news

Hudbay and Copper Mountain combine to create Canada third-biggest copper producer

Kitco Media
By Kitco News
Published
Updated
Kitco News
The Leading News Source in Precious Metals

Kitco NEWS has a diverse team of journalists reporting on the economy, stock markets, commodities, cryptocurrencies, mining and metals with accuracy and objectivity. Our goal is to help people make informed market decisions through in-depth reporting, daily market roundups, interviews with prominent industry figures, comprehensive coverage (often exclusive) of important industry events and analyses of market-affecting developments.

Hudbay Minerals (NYSE: HBM) and Copper Mountain Mining (TSX: CMMC) announced today that they two are combining in a $439 million deal.

The combined company will become the third-largest copper producer in Canada and will create a 150,000-tonnes-per-year copper producer. The companies said there are US$30 million per year in operating efficiencies and corporate synergies coming from the combination.

The transaction represents approximately C$2.67 per Copper Mountain common share and a US$439 million equity value based on Hudbay’s closing share price on April 12, 2023. The transaction consideration represents a 23% premium to Copper Mountain shareholders based Hudbay’s and Copper Mountain’s 10-day volume-weighted-average share prices on April 12, 2023.

Hudbay was up 2% today to $7.15 a share.

Share

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.