RE:RE:RE:Seeking Alpha ReportThink indeed it is Lundin holding back NSU,SoTheyCanTakeoverCheap
The SeekingAlpha article confirms what I thought before, it is highly likley that Lundin will buy Nevsun. So if that is the case they have a huge motive to drive down the stock of NSU so they can buy all of it cheaper. NSU should be $6 today with soaring copper and zinc prices, but is $3, who wins from that? Lundin does
Grimreaper, are you or anyone else selling here? I have added, NSU is a rare value. Does anyone really think that Nevsum will never solve the recovery rate issue? No one has said that and in CC the company said it is getting better by a lot each month. JMHO everyone expects that problem to be solved. This all meant in a friendly manner. Who is selling NSU now? And yes company told me the same about Chinese being out already
Is anyone on this board a net seller in last 3 months?
I was an insider in a company (largest holder and officer) and when I moved to another company wanted to sell my stock. Not easy at all. turned out you have to use a market maker to do that and a lot of paperwork. The market maker told me he would "work" the order. That he would both sell and buy so as to not push down the price, even though the whole purpose was to sell it all. Lundin can save $100s of millions by keeping NSU low while the work out a deal. JMHO that is most likely explaination of why NSU has not bebefited as FCX and other copper+zinc miners from huge run in copper and zinc.
If people here think NSU will never solve recovery issues and are selling the stock, please post and I will stand corrected.
Cheers
Will Lundin Mining Acquire Nevsun Resources?
Nov. 28, 2016 12:14 PM ET|21 comments | About: Lundin Mining Corp. (LUNMF), NSU, Includes: FCX
Peter Arendas Peter ArendasFollow(694 followers)
Long only, commodities, research analyst
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Summary
Lundin Mining has decided to sell its stake of Tenke Fungurume for $1.136 billion.
After the transaction is completed, Lundin Mining will have over $2 billion at its disposal.
Lundin Mining was interested in the Timok project just before it got acquired by Nevsun Mining.
Nevsun's operating Bisha mine could replace a huge chunk of production lost by the Tenke Fungurume sale immediately.
If an offer arrives, Nevsun's shareholders could get at least $5 per share.
On Nov. 15, Lundin Mining (OTCPK:LUNMF) announced that it not only waived its right of first offer to acquire Freeport-McMoRan's (NYSE:FCX) indirect interest in the Congolese Tenke Fungurume copper mine, but also decided to sell its own 24.8% interest to a Chinese company for $1.136 billion in cash and a contingent consideration of up to $51.4 million. According to Paul Conibear, CEO of Lundin Mining:
The sale will enable Lundin Mining to advance its strategy to incrementally grow the company with projects and operations we control, while maintaining a strong balance sheet.
In Q3 2016, the Tenke production attributable to Lundin Mining equaled 13,522 tonnes (29.81 million lb) of copper cathode and 980 tonnes (2.16 million lb) of cobalt hydroxide. It equates to approximately 120 million lbs of copper and 8.6 million lbs of cobalt per year. According to 2016 production guidance, Tenke Fungurume is responsible for more than 20% of Lundin Mining's copper production. The sale of Tenke will result into a notable decline in copper and cobalt production. Given the statement of Lundin Mining's CEO, we can expect that the company will try to replace Tenke Fungurume sooner rather than later. This is where Nevsun Resources (NYSEMKT:NSU) comes into play.
Why Nevsun Resources?
The main reason why Nevsun Resources is a logical acquisition target for Lundin Mining is the Timok project in Serbia. The Timok project consists of a high-grade Upper zone and a low-grade but very large Lower zone. It was being developed by Freeport-McMoRan and Reservoir Minerals. Back in early March, Lundin Mining announced an agreement to buy 100% of Freeport-McMoRan's stake in the Upper zone and 28% of its stake in the Lower zone for $262.5 million.
The management believed that Timok could become an important asset for Lundin Mining. According to Lundin Mining's CEO:
The acquisition of an interest in the Timok project is consistent with our growth criteria that we have rigorously followed over the last few years. This high quality copper/gold project fits ideally within our overall asset base of operations in the Americas and Europe. This transaction enables the existing Freeport/Reservoir partnership to leverage our proven underground base metals development, construction and operating skill sets to advance the Timok project into operation in a timely manner. The Timok project is expected to enhance the Company's long term copper growth pipeline, while preserving our strong balance sheet.