Capstone Bull Says Luca Got a Good Deal on Cozamin Mine

Dow Jones
09/22

0315 GMT - MA Moelis Australia thinks Luca Mining is getting Capstone Copper's Cozamin mine at an attractive price. The up to US$385 million sale compares to MA's valuation of US$631 million. "However, we are conscious of potential discrepancies between our price assumptions and those used by both CSC and the party acquiring the asset," it says. The price might also suggest either a shorter mine life or higher exit obligations than MA was estimating. "Regardless, the difference between our valuation assumption and the upfront sale price is arguably modest" versus Capstone's over A$11 billion market value, it says. The deal also offers some potential benefits for Capstone, including reducing operating risk, says MA. It has a buy rating and A$16.40 target on Capstone. Shares are up 1.4% at A$14.76.

 

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