Boliden won the race against three Australian miners and will pay 1,3 billions of dollars for the largest Portuguese mine and another located in Sweden.
The largest Portuguese mine is preparing to change hands. Swedish mining company Boliden announced this Monday that it is in exclusive negotiations with Lundin Mining for the purchase of the Neves-Corvo mine in Portugal and another mine in Sweden for 1,3 billion (next to 1,23 billion), plus 150 million dollars variable.
A The car, who won the race over three Australian miners, expects to complete the transaction by the middle of next year, but the operation is still subject to authorization from several entities, including the European Commission and the Portuguese Government, that has to give the green light to change the concession contract for the Neves-Corvo mine.
To finance the operation, the Swedish mining company secured a bridge loan from BNP Paribas, da RBC Capital Markets e do SEB.
Yet, Boliden intends to refinance this bridge loan through medium and long-term debt and also through the issuance of shares, pointing to a capital increase of around 600 million (about half of the bank loan) to be carried out during the first half of next year, depending on market conditions.
Beyond the 1,3 billion dollars of upfront cash, the Swedish mining company will pay an additional amount that could amount to 150 million and whose payments are dependent on the evolution of zinc and copper prices over the next three years (with regard to the Neves-Corvo mine) and the level of production over the next two years at the Swedish mine.
According to Boliden, the Neves-Corvo and Zinkgruvan mines will contribute around 300 million to 350 million dollars of operating results (EBITDA) per year for the next five years.
In the case of the Portuguese mine, which has been owned by Lunding since 2006, counts five large deposits in production: Neves, Corvo, Grace, Zambujal and Lombador.
In 2023, Somincor's billing (that explores mine) showed a drop compared to the previous year, to 393 million, an operational result (EBITDA) of 83 millions and profits, falling, of about 1,5 million (13 million in 2022).
The Portuguese Government has already said be following the sale process of the mines, taking into account the “social and economic relevance” of Somincor for workers, for the region and the country”, ensuring that “it will exercise its powers to guarantee full respect for the legal and labor standards in force”.
The Canadians at Lundin put the two mines in Europe up for sale at the beginning of the year as they turned their attention to the South American market. In the summer, he announced a partnership with the giant BHP to move towards the purchase of Filo for around three billion dollars, the creation of a joint venture is planned to explore copper projects in Argentina.
News: Lidador News/ eco.sapo.pt
