In today’s briefing:
- Rex Minerals (RXM AU)’s Scheme With The Salim Group
- Copper Tracker July 2024: Physical/Equity Screens And Trades
- Mongolia Mining Corp (975 HK): Play on Coking Coal Price With Growth Optionality
Rex Minerals (RXM AU)’s Scheme With The Salim Group
- Copper-Gold play Rex Minerals (RXM AU) has entered into a Scheme with MACH Australia.
- MACH, wholly-owned by Indonesia’s Salim Group, is offering A$0.47/share in cash, a 71% premium to last close and a decade-high.
- Rex shareholder approval and FIRB are the key conditions. Rex’s board is unanimously supportive. This Offer will tentatively complete late October.
Copper Tracker July 2024: Physical/Equity Screens And Trades
- Copper rebounded last week, rising 4% on the LME and 6% on the COMEX, led by improved sentiment but in line with most of its commodity complex peers.
- Check out our initiation, Copper Primer: What We Like About Copper and What to Play, and our equity initiation, Southern Copper: In a League of Its Own.
- We provide updates on the long copper-short gold trade we explored last week and the iron condor in Freeport Mcmoran (FCX US)
Mongolia Mining Corp (975 HK): Play on Coking Coal Price With Growth Optionality
- Following our piece, Fushan Energy (639 HK): Coking Coal Prices To Strengthen With Anglo Accident, we highlight Mongolian Mining (975 HK) as another play with growth potential.
- With a market capitalization of 1.1 bn USD, it trades at 5.3x PE, trailing, and with the sale of 20% of its subsidiary KEX, it is net cash.
- Potential catalysts include the payment of a first dividend once it has redeemed the perpetual notes and the commencement of its highly accretive gold project in 2025 in Mongolia.
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