Metals Acquisition Eyes Australia Dual Listing; Vale, BHP Settle For $9.67B In Dam Collapse; Freeport Gains From Copper, Gold Demand

Top Stories for Jan. 26, 2024:

1. Metals Acquisition Limited MTAL lodged a prospectus with the Australian Securities and Investments Commission for an initial public offering of CHESS depository interests in Australia.

The company is seeking a dual listing on the Australian Securities Exchange to raise A$300 million through 17,647,059 - 18,750,000 CHESS depository interests that will not extend to the company's U.S. shareholders.

The funds raised from the offering will primarily be used to repay a loan for acquiring the CSA Copper Mine in Australia, increase working capital for operational flexibility and potential growth, finance exploration and development at the mine and cover the costs of the offering and other administrative expenses.

2. A Brazilian judge ordered Vale S.A. VALE and BHP Group Limited BHP to pay $9.67 billion after a 2015 dam collapse in the southeastern city of Mariana that killed 19 people and polluted the Rio Doce River.

The decision took into account the repair and compensation expenses already acknowledged by the two companies, and the funds will be used for projects in the area affected.

3. Research from Industrial Info Resources sees growing demand for copper and gold benefiting Freeport-McMoRan Incorporated FCX, with an expected 4.1 billion pounds of copper, 2 million ounces of gold and 85 million pounds of molybdenum sold in 2024.

Industrial Info is currently tracking almost $13 billion of active and planned projects for Freeport-McMoRan, including roughly $3 billion in the U.S.

In an earnings-related conference call, Freeport-McMoRan CEO Kathleen Quirk said, “There were the supply shortfalls throughout the industry for some significant mines, for a range of factors that are kind of common to our business.… As a result, inventories of copper around the world are at historically low levels, and the inventory levels are really inconsistent with the current copper price.”

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