First Quantum says Jiangxi bid is just speculation - report
Copper miner First Quantum told Bloomberg News on Tuesday that Jiangxi Copper is not discussing any takeover attempt.
Over the past five days, First Quantum (TSX: FM) is up 10% to $13.495 per share.First Quantum's CEO Clive Newall said the company has share-buying restrictions that limit the number of shares that can be acquired to 20%. The restriction rule has a couple more years to run, said Newall.
In October, Pangaea Investment Management, which is backed by Jiangxi Copper Company Limited, bought 6 million shares of First Quantum bringing the Chinese miner's ownership stake up to 10.8%. Bloomberg reports that that stake is now at 18%.
First Quantum said in a news release that it has been in discussions with Jiangxi Copper "...regarding a possible investment in the Zambian assets of the company. There can be no certainty that any transaction will proceed."
First Quantum's Zambian mine, the Kansanshi mine, is the largest copper mine in Africa. On First Quantum's website, the company says Kansanshi is capable of producing 340,000 tonnes of copper and more than 120,000 ounces of gold per year.