Latest news with #CentralAsiaMetals
News.com.au
26-05-2025
- Business
- News.com.au
Art of the Deal: New World's $185m cash takeover has fans
Arizona copper developer New World Resources announced a $185m cash takeover by London-listed Central Asia Metals last week At 5c a share the deal clocks in at a near 80% premium to its pre-bid share price We check what analysts and instos think of the deal New World Resources' (ASX:NWC) planned $185 million takeover by London-listed Central Asia Metals has been branded a 'sensible deal' and received a positive response from at least one large shareholder after the copper explorer plotted an exit via the acquisition. The company owns the Antler project in Arizona, one of the top copper jurisdictions in the United States. While it doesn't have the heft of the nearby Resolution deposit, a potential 400,000tpa mine on the books of Rio Tinto and BHP, it is far more likely to get developed in the near term. With most of its infrastructure on public land and key approvals already well progressed, the previously operating underground mine could be approved by early next year and in production as soon as 2027, within the term of pro-mining US President Donald Trump. At 30,000tpa copper equivalent (including 16,000tpa of the red metal), the project is ready to benefit as copper surpluses shift to deficits amid surging demand for the metal from clean energy technologies. The deal was announced on Wednesday night. Priced at 5c a share, the offer came in at a 78.6% premium to New World's undisturbed May 20 closing price of 2.8c, 95.7% premium to its 30-day VWAP and 150% premium to the terms of a $14m capital raise in March. CAML already has operating experience at the Kounrad project in Kazakhstan and Sasa in North Macedonia, 150km east of the capital of Skopje. America is a different kettle of fish, but one that has become increasingly development friendly for miners in recent months, with Antler notably joining the rush of companies to be placed on the FAST-41 transparency list, a designation that should streamline approvals. What did analysts say? With the deal announced, the verdicts have started to flow through. Canaccord Genuity's Paul Howard described the $185m deal as "sensible" in a note to clients. "After undertaking a recent financing and strategic partnering process, the Board unanimously recommends that shareholders vote in favour of the scheme, in the absence of a superior proposal/subject to the independent expert, with the Board considering the scheme an attractive and accelerated realisation of value," he said. "Given permitting and development risk, this screens as a sensible deal at this point in time, in our view." Howard noted the transaction remains subject to the receipt of US and North Macedonian regulatory approvals, an independent expert report and Australian court approval. His London counterpart Tim Huff said the deal came in at a 0.24x multiple on the NPV in the Antler PFS, but described it as a 'sensible discount' with the DFS and permitting still to be completed. "With the Antler PFS forecasting over US$100m of annual FCF at full run-rate, we see this as a solid and affordable transaction for CAML and a positive for its longer-term growth strategy," he said. Over at Argonaut, George Ross noted the scheme will not be voted on until August, leaving the door open for a competitive bidding process. The Perth brokerage has cut its price target from 6.5c to 5c in line with the deal price, changing its recommendation from a spec buy to a hold. What do investors say? By and large the deal appears to have been well received on the market, with the company's shares trading slightly below the offer price. Nero Resource Fund portfolio manager and founder Rusty Delroy says his fund holds in the order of 52 million shares, which would place it among the top 10 shareholders at a stake of close to 1.5%. The largest shareholder, Perth-based private equity firm Resource Capital Funds, has over 7%. Delroy said high prices for copper and gold, mixed with weak sentiment for junior explorers and developers had tipped the scale in favour of M&A. "In terms of copper M&A more broadly, I think we are in an M&A cycle in copper, gold and other commodities. I think across the resources landscape there are big and mid-size operators that have very healthy balance sheets," he said. "At the same time ... In the single-asset, small-cap land, companies with progressed, legitimate assets, there are also very compelling valuations in those. "So when you have a combination of good balance sheets and reasonable operating margins up the food chain, combine that with low valuations down the food chain, then that should precipitate M&A." Delroy said New World's management team, led by managing director Nick Woolrych and CFO Warwick Amos, had done a good job to present an asset with a feasible timeline to production. "This (deal) is an absolute credit to management. The MD and the CFO are real weapons, they're good blokes and proper mining adults," he said. "It's precipitated a corporate outcome much quicker than we anticipated." He added that the change in the political framework under Donald Trump was precipitating M&A, with cashed-up companies now hunting the US market. "America is becoming relatively more attractive as an investment destination in natural resources, and I think this deal very clearly demonstrates that," Delroy said.
News.com.au
22-05-2025
- Business
- News.com.au
Resources Top 5: M&A brewing as New World rises on $185m US copper takeover
New World Resources soars ~70% on $185m takeover from London-listed Central Asia Metals Aurumin has entered into binding term sheets with Newcam Minerals Omega Oil and Gas has confirmed that an extensive oil & gas system is present across its Taroom Trough acreage Your standout resources stocks for Thursday, May 22, 2025 New World Resources (ASX:NWC) M&A activity is heating up in the resources sector and it is not restricted to gold stocks. New World has fielded an offer from London-based Central Asia Metals and directors unanimously recommend a vote in favour of a scheme implementation deed valuing the company at $185m. Investors share the enthusiasm of directors, sending NWC shares 71.43% northward to 4.8c, a two-year high, with more than 237m shares changing hands. It closed up 66% at 4.65c. The all-cash offer of 5c per share represents a 95.7% premium over the 30-day volume weighted average price of the company's shares and is 150% higher than the issue price of its March 2025 capital raise. 'We believe this transaction represents an exceptional outcome for New World shareholders, delivering certainty of value at a significant premium,' New World's managing director Nick Woolrych said. 'The board decided to pursue this transaction despite receiving exceptionally strong interest from multiple Tier-1 project financiers and strategic partners, which reflects the quality of the Antler Copper Project and its inherent strategic value in the global copper landscape. 'Ultimately, the board believes that this transaction offers a superior risk-adjusted outcome compared to a standalone development of the Antler Copper Project, allowing shareholders to crystallise their investment at a significant premium without the risks associated with a longer-term standalone financing and development pathway. 'We believe that CAML will be a great steward for the Antler Copper Project moving forward, bringing their strong balance sheet and extensive underground mining and operating expertise to the table, together with New World's established US operations team, to bring this high-quality underground copper asset into production.' Central Asia Metals is a London-based base metals producer with operations in Europe and Central Asia – the SASA underground zinc-lead mine in North Macedonia and Kounrad SX-EW copper project in central Kazakhstan. It also owns an 80% interest in CAML Exploration, a subsidiary formed to progress early-stage exploration opportunities in Kazakhstan, and a 28.4% interest in Aberdeen Minerals Ltd, a privately-owned UK company focused on the exploration and development of base metals opportunities in northeast Scotland. CAML brings extensive experience in developing and operating underground mines of a similar size and scale to New World's Antler Copper Project and is committed to continuing the rapid advancement of Antler towards development. An independent expert will be appointed by the company to determine if the offer is in the best interests of its shareholders. The offer will then be put to a vote by New World shareholders at a scheme meeting with the company's directors saying they will vote in its favour. 'I commend the entire New World team who have done an exceptional job advancing the Antler project to date,' New World's chairman Richard Hill said. 'The CAML scheme is the culmination of many years of hard work and delivers certain value for shareholders at a significant premium.' Earlier this month, New World Resources announced a substantial increase in the contained metal and the confidence level of the JORC MRE for Antler following a successful exploration drilling program and a comprehensive exploration review. The total MRE, inclusive of newly defined mineralised zones, now stands at 14.2Mt at 3.8% copper equivalent. Contained CuEq metal increased by about 16% to 543,000t, including a 27% increase in contained silver and a 15% increase in contained gold. That confirmed Antler's position as one of the highest-grade copper projects globally. Aurumin (ASX:AUN) Also on the transaction front, Aurumin has entered into binding term sheets for two strategic arrangements with Newcam Minerals Pty Ltd that advance AUN's path to gold production and unlock value from non-core assets. The first agreement is valued at $4m and will see Newcam earn up to 50% interest in the Johnson Range and Mt Dimer gold projects via staged expenditure with the intention of forming a joint venture over the gold rights. Exploration and development will be led by Newcam during the earn-in period and Aurumin can elect to be free-carried to net profit. A term sheet has also been entered for a $1m cash sale of the non-gold mineral rights across Aurumin's Sandstone tenure, streamlining the company's portfolio and strengthening its balance sheet. Together, these transactions support the near-term development of the 64,700oz at 2.51g/t Au Gwendolyn deposit, which is on a granted mining lease and recently underwent its first drilling in more than a decade. Newcam, which can begin exploration expenditure immediately, is a private company with a multiple mineral portfolio including gold and iron ore assets in WA's Mid West. With its own drilling, mining and haulage fleet, Newcam is a fully integrated mine operator, ready to deploy its experienced team and quality equipment onto new projects. 'Subject to completion, these transactions are strategically transformative. With gold trading above A$5000/oz, securing a fully funded, non-dilutive pathway to production at Johnson Range will be a major milestone for Aurumin,' Aurumin's managing director Daniel Raihani said. 'The joint venture with Newcam, once executed, will unlock value from both Johnson Range and Mt Dimer, while the $1 million cash sale of non-gold rights at Sandstone strengthens our balance sheet and sharpens our focus as a pureplay gold developer. 'We're pleased to be working with a partner that brings proven capability and a production mindset, and we look forward to delivering further results as assays from Gwendolyn are returned. 'This is the first drilling at Johnson Range in over a decade, and our new management team is hitting the ground running at a time when the outlook for gold could not be stronger.' Investors have welcomed the arrangement with AUN shares as much as 28.8% higher to 8.5c, a new high of two years, on volume of more than 36m. Johnson Range is 200km north of Southern Cross and includes the Gwendolyn deposit, a near-term development opportunity on a granted mining lease and within haulage distance of multiple processing centres The Central Sandstone Gold Project is 520km northeast of Perth and has a total resource of 886,000oz as well as iron ore opportunities. Aurumin fielded an approach last year from Brightstar Resources (ASX:BTR), owner of the Sandstone projects formerly held by Alto Metals and Gateway Mining (ASX:GML), to JV its Sandstone assets. Omega Oil & Gas (ASX:OMA) The Taroom Trough in Queensland's Bowen Basin has been drawing attention due to its potential to feed oil and particularly gas to the energy hungry east coast of Australia. One ASX-lister making noise in this region is Omega Oil and Gas which has confirmed that an extensive oil and gas system is present across its acreage after completing a cased hole logging program at Canyon-2 well with shares jumping 24% to a daily high of 26c. High-quality, pulsed neutron logs were acquired in the well, which sits 15.7km from the Canyon-1H horizontal well that flowed significant quantities of oil with gas during testing. This tool was not run back when Canyon-2 was first evaluated following drilling in 2023. Omega Oil and Gas (ASX:OMA) noted that open hole logs obtained at the time were subject to difficult hole conditions causing 'stick-slip' and subsequently were sub-optimal quality. By contrast, the new logs are of very high quality and have confirmed an extensive oil and gas petroleum system within the project area. They indicated a thicker and higher-quality pay interval within the Canyon Sandstone interval, which corresponds with the zone tested in Canyon-1H, and some additional zones with good reservoir qualities that had not previously been identified. The logs also allow clear distinction between oil-bearing and gas-bearing intervals, allowing the company to select intervals for the diagnostic fracture injection test, which is essentially a mini fracture stimulation test. Canyon-2 penetrated the Canyon Sandstone 167m shallower than at Canyon-1. Notably, the enhanced reservoir properties observed from log analysis may indicate that reservoir properties are likely to improve further in the eastern part of the Canyon project area where the prospective Permian interval is up to 800m shallower than at Canyon-1. 'The Canyon-2 cased hole logs have provided confirmation of an extensive oil and gas province with encouraging signs pointing toward commerciality,' managing director Trevor Brown said. 'The Canyon-2 DFIT program will add to our understanding of stacked pay potential and allow important regional correlations – further de-risking the play.' Trigg Minerals (ASX:TMG) Looking to grow its antimony position, Trigg Minerals this week executed an s covering the Antimony Canyon Project (ACP) in Utah. With the ink barely dry, on Wednesday Trigg bulked up its capabilities by hiring experienced antimony downstream expert Wiehann Kleynhans. From 3.8c on May 16, shares of the $53.8m market cap company reached 5.6c, including a jump of 21.8% from the close on May 21. ACP is currently the largest and highest-grade antimony project in the US, with the Bureau of Mines reporting a foreign resource estimate of 12.7Mt grading 0.79% antimony for 100,300t of contained antimony. It also features several historical high-grade mines, including Emma mine averaging 1.5% antimony with considerable zones averaging 2.2%; Mammoth averaging 1.5% Sb with considerable zones averaging 2.4%; and Nevada averaging 2.2% Sb with considerable zones averaging 3.6%. And what's more … Utah is the world's top mining jurisdiction according to the latest Fraser Institute Survey. Trigg Minerals (ASX:TMG) says the acquisition strengthens its antimony strategy, complementing its 1.52Mt resource at 1.97% Sb Wild Cattle Creek project in NSW and expanding its footprint across tier-one jurisdictions, while advancing both projects simultaneously supported by a healthy cash balance. To support the strategy, Kleynhans – an experienced geologist, resource and commodity analyst and dealmaker with deep experience in the antimony sector – has been appointed the company's vice president, US downstream operations, and will spearhead downstream and smelting processes at ACP. Hawsons Iron (ASX:HIO) Fresh testwork has backed the plan of Hawsons Iron to use 100% dry processing at its namesake Far West NSW project as it is a cleaner, cheaper alternative to the traditional wet method. An independent report from Stantec Australia confirms the dry circuit is not only viable but also cuts costs and improves environmental outcomes while also opening the door to potential value-add side products like silica sand. Shares of the $19.82m market cap company have been as much as 43% higher to 2c. The dry comminution testwork has been completed by the independent engineering consultants along with a mineral resource variability study. Stantec's Project Report provides confidence for further investigation into potential secondary products (eg hematite, silica sands) and flow on optimisation of mine design, processing and logistics. Detailed analytical work completed recently demonstrates a high level of geochemical and physical material consistency, throughout the current resource, particularly within the early phase of operations, which significantly contributes towards de-risking the project during its early years of operation. The company is collating engineering and cost data with the aim of releasing an updated prefeasibility study together with maiden ore reserves for the Hawsons iron project. 'The results are crucial for cost optimisation and smarter decision making as we head towards finalising the Hawsons process flow sheet by the end of the year,' CEO Tom Revy said. 'The next phase of detailed work will involve piloting of the material through GEBR Pfeiffer's test facility in Germany which will result in defining the project's final process design criteria." This article does not constitute financial product advice. You should consider obtaining independent financial advice before making any financial decisions.
News.com.au
22-05-2025
- Business
- News.com.au
Break it Down: New World Resources fields premium $185M offer to acquire Arizonan copper
Stockhead's Break it Down brings you today's leading market news in under 90 seconds. In this episode, host Tylah Tully unpacks the latest from New World Resources (ASX:NWC) and a premium $185 million acquisition offer from London-based Central Asia Metals (LON: CAML) to snap up NWC and its Antler copper project in the Grand Canyon State of Arizona. New World says it wasn't the only offer on the table, so tune in to hear why the company was unanimous in recommending its acceptance and what's coming next. While New World Resources is a Stockhead advertiser, it did not sponsor this content. Originally published as Break it Down: New World Resources fields premium $185M offer to acquire Arizonan copper
Yahoo
05-03-2025
- Business
- Yahoo
5 under-the-radar UK shares that deserve more attention
Small or lesser-known companies can have significant growth potential. Buying shares in these UK-listed companies early on can yield high returns if they grow successfully. But which to consider? Read on… What it does: Central Asia Metals is a base metals producer with copper operations in Kazakhstan and a zinc and lead mine in North Macedonia. By Paul Summers. Holders of shares in Central Asia Metals (LSE: CAML) endured a volatile 2024. Starting the year at just over 150p a pop, the stock soared as high as 235p by May as the company benefited from strong prices and solid operational performance. However, this gain had all been lost by the end of December. As far as I can tell, this is due to general geopolitical concerns and lacklustre demand for lead. The shares now yield a monster 10% for FY25. Assuming analysts aren't wrong, that would represent a good return on its own. On an optimistic note, profit is expected to cover this cash distribution and the balance sheet looks robust. Although rising costs could prove problematic, a price-to-earnings (P/E) ratio of seven suggests quite a bit of negativity is already priced in. When sentiment for base metals improves, the stock could do very well. Paul Summers has no position in Central Asia Metals. What it does: Filtronic makes power amplifiers and transceivers that are used in the telecommunications, aerospace, and defence sectors. By Ben McPoland. With a market cap of £232m as I write, Filtronic (LSE: FTC) is still a relatively under-the-radar UK stock. That said, it's been a popular one recently, surging 172% over the past year. This can be almost entirely put down to one word: SpaceX. That's because Elon Musk's reusable rocket company has been ordering components from Filtronic for ground stations that form part of its fast-growing Starlink satellite network. In future, SpaceX intends to add tens of thousands more satellites to its mega-constellation. This could support years of rising sales at Filtronic, given its small size (less than £50m in revenue). What could go wrong? Well, losing the SpaceX contract it signed last year would be extremely negative, as this key customer is now contributing around 50% of sales. Also, the stock isn't cheap, trading at a forward price-to-earnings multiple of 38. Finally, the company doesn't have a history of sustained revenue and earnings growth. That might be about to change, but there could be lumpiness as SpaceX orders ebb and flow in future. Ben McPoland does not own shares in Filtronic. What it does: OXB is a contractor that develops and manufactures gene cell therapies for biotech and pharmaceutical firms. By Mark Hartley. OXB (LSE: OXB), previously Oxford Biomedica, is a UK-based contract development and manufacturing organisation (CDMO) specialising in cell and gene therapies. It was founded in 1995 as a spin-out from the University of Oxford and has evolved into a global leader in viral vector production, including lentivirus, adeno-associated virus (AAV) and adenovirus. As a contractor, OXB relies on securing partnerships with biotech and pharmaceutical firms. If it loses out on contracts to competitors, its performance could be impacted. Although its net margin has improved recently, the company is not yet profitable. If full-year results for 2024 miss expectations, it could hurt the share price. But a recent trading update outlined expectations of 78% organic revenue growth for FY2024, based on increasing demand for their CDMO services. Plus, its order book nearly doubled since August 2024, indicating strong commercial demand. I expect it will become a global leader in its field. Mark David Hartley owns shares in Oxford Biomedica. What it does: TBC Bank is listed on the FTSE 250 and provides financial services in Georgia and Uzbekistan. By Royston Wild. TBC Bank (LSE:TBCG) doesn't attract anywhere near the same degree of attention as FTSE 100 firms like Lloyds, Barclays and NatWest. Yet this is a bank which — thanks to its focus on fast-growing Georgian and Uzbekistani markets — could provide far better shareholder gains. Past performance isn't a reliable guide to future returns. But TBC Bank's 208% share price explosion over the last five years underlines its incredible investment potential. By comparison, Lloyds' share price has risen just 21% over the same period. Given the varying economic outlook for the UK and Georgia, I expect this outperformance to keep rolling on. While the IMF thinks Britain's economy will grow 1.1% in 2025, Georgian GDP is tipped to expand a whopping 6%, continuing the trend of recent decades. If accurate, earnings at TBC could soar as financial services demand rises. Pre-tax profit here leapt 15.8% over the course of 2024. A deterioration in Georgia's fragile political landscape could impact future growth. However, I believe this potential hazard is baked into the bank's low price-to-earnings (P/E) ratio of 5.2 times. Royston Wild does not own shares in any of the shares mentioned above. What it does: Yu supplies gas and electricity to UK business customers and installs and operates smart meters. By Roland Head. Yu Group (LSE: YU.) has delivered strong growth through a volatile period for energy markets. Revenue has risen fivefold to £578m since 2019. Profitability has also improved, with operating profit rising from £3.5m in 2021 to £47m over the 12 months to 30 June 2024. Yu is still run by its founder and 51% shareholder Bobby Kalar. I believe Kalar's twin role as CEO and major shareholder means he's likely to maintain tight financial discipline. This is a key risk for energy suppliers. Yu is exposed to big swings in commodity prices, customer bad debt and the financial hazards of fixed price contracts. Growing usage of smart meters, a new energy trading deal with Shell and falling bad debt levels suggest to me that Mr Kalar is managing this £252m business well. If he can continue to do so, the reward for shareholders could be higher profits and generous dividends. Roland Head owns shares in Yu Group. The post 5 under-the-radar UK shares that deserve more attention appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool The Motley Fool UK has recommended Barclays Plc and Lloyds Banking Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
Yahoo
22-02-2025
- Business
- Yahoo
P/Es below 8 and dividend yields above 6%! 3 bargain UK shares to consider
UK shares are enjoying a purple patch right now. After rising strongly in 2024, the FTSE 100 is up 5.4% since the start of the year, beating the S&P 500 in the year to date. It's not just blue-chip UK stocks that are currently tearing higher. Shares of all types and sizes are gaining value as market confidence in the British economy improves, bolstering demand for domestic assets. Yet the London stock market's still a great place to pick up bargains. Here are three whose low price-to-earnings (P/E) ratios and enormous dividend yields make them, in my opinion, worth a very close look. A sinking red metal price has pulled Central Asia Metals (LSE:CAML) shares sharply lower since last spring. The danger isn't over, either, as China's economy splutters and the threat of new trade tariffs grows. Yet I think copper stocks like this could rebound strongly over the long term. Demand for the versatile metal — as well as lead and zinc, which Central Asia Metals also produces — is still tipped to rocket in the coming decades, reflecting its important role in fast-growing industries like renewable energy, consumer electronics, and artificial intelligence (AI). Central Asia's near-29% stake in Scottish explorer Aberdeen Minerals also gives it exposure to the nickel and cobalt markets. Its investment last year provides added scope for to capitalise on the energy transition. Today Central Asia Metals trades on a forward P/E ratio of 7.3 times with a 10% dividend yield. Times are tough for the UK retail sector. Rising inflation and weak consumer appetite is hampering revenues, while labour and energy costs are creeping higher. But I believe Card Factory (LSE:CARD), whose forward P/E ratio is 6.2 times and dividend yield is 6.1%, is an attractive dip buy to consider. The firm's focus on the low-cost end of the greetings card market helps revenues remain stable in good times and bad. Like-for-like sales rose 3.7% during the 11 months to December. The company is also making strong progress in cutting costs to support earnings. With Card Factory's store rollout programme continuing, and the business entering the US market last year, I think long-term earnings could grow strongly. Rising UK inflation could also cause turbulence at Care REIT (LSE:CRT). As a real estate investment trust (REIT), its earnings are highly sensitive to movements in interest rates. Yet I believe the uncertain rate outlook is more than baked into the trust's low forward P/E ratio of 5.5 times. Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. With the business also sporting an 8.8% dividend yield, it's a bargain share I myself am considering buying. That large yield partly reflects REIT rules, which stipulate 90% or more of annual rental profits be distributed to shareholders. As a major care home provider, Care REIT has considerable long-term growth potential as Britain's elderly population steadily rises. Average weekly fees here leapt 6.5% over the course of 2024, and could continue to increase strongly as demand ramps up. The post P/Es below 8 and dividend yields above 6%! 3 bargain UK shares to consider appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Royston Wild has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Sign in to access your portfolio
