GICS Sector : Financial Services
Metals Acquisition Corp does not have significant operations.It intends to effect a merger, share exchange, asset acquisition, share purchase, reorganization, or similar business combination with one or more businesses.The company intends to focus its search on metals and mining businesses.
MAC Copper Limited reported strong financial performance in its Q4 2024 earnings report, beating the mid-point of guidance with 11,320 tonnes of copper produced at a grade of 4.1% milled. The company's C1 cost for the quarter was $1.66/lb, a good result, and it had $213 million of liquidity at the end of the year. The net gearing ratio stood at 15% at the end of the year, indicating a significant deleveraging of the balance sheet.
Publication Date: Feb -16
The company's strong financial performance was driven by increased production and reduced costs. Processing costs per tonne were down 2% from the previous quarter, and mining costs per tonne were down 21% from Q1. The company's ability to spread fixed costs over increased volumes also contributed to the strong results. As Mick McMullen, CEO of MAC Copper Limited, stated, "We've delivered on our goals in 2024, including operating the mine safely, increasing the reserve life to 11 years, and achieving record copper production."
The company's balance sheet is in a strong position, with $172 million in cash and a pro forma net gearing ratio of 15%. The company has also reduced its senior debt and has a healthy cash flow from operations. As Morné Engelbrecht, CFO, noted, "The balance sheet restructure will take around six to eight weeks to finalize, aiming to extend debt at a low 7% interest rate and increase the rolling facility for better balance sheet management."
The company's operational performance was strong, with a TRIFR of 11, a significant improvement from 14 in the previous quarter. The company's capital projects, including the stage 10 lift, will give the company tailings capacity out to 2030. The Ventilation project is on track to meet its A$42 million budget and target completion date of Q3 2026, with potential for incremental production from the ventilation drive.
The company is working on updating its guidance, but the current expectation is for a bit more tonnes, similar grade, and a higher production level. The key driver will be consistency in tonnes mined, rather than grade. The company aims to mine more tonnes and achieve a higher production level.
With a price-to-sales ratio of 5.99 and an enterprise value to EBITDA ratio of 35.5, the company's valuation appears reasonable. Analyst estimates suggest a revenue growth of 19.8% next year, indicating a positive outlook for the company.
MAC Copper Limited (NYSE:MTAL) Receives $12.63 Consensus Price Target from Brokerages
Oct -31
MAC Copper Limited Announces Scheme with Harmony Becomes Effective
Oct -10
MAC Copper Limited Announces MAC Shareholders Vote in Favour of Scheme With Harmony
Aug -29
MAC Copper Limited Announces Dispatch of Scheme Circular
Aug -05
Court Orders Meetings of MAC Shareholders to Consider Scheme With Harmony
Jul -31
MAC Copper Limited (MTAL) Q2 2025 Earnings Call Transcript
Jul -24
MAC Copper Limited Provides Update on Recommended Transaction with Harmony
Jul -22
MAC Copper Limited Provides Notice of Release of Second Quarter 2025 Results and Conference Call Details
Jul -14
Copper's 4.65% growth is driven by increasing demand from electric vehicle production, renewable energy infrastructure, and construction activities. Additionally, supply chain constraints, mine closures, and declining ore grades contribute to the metal's growth. Furthermore, copper's use in 5G infrastructure and rising global electrification also support its upward trend.
Metals Acquisition Corp's 4.83% growth in Silver is driven by increasing industrial demand, particularly in the solar panel and electronics industries, as well as rising investment demand fueled by inflation concerns and a weaker US dollar. Additionally, supply constraints and mine production disruptions contribute to the metal's growth.
Metals Acquisition Corp's copper products are used in various industrial applications, including electrical wiring, plumbing, and architecture.
Metals Acquisition Corp's gold products are used in jewelry, coins, and other precious metal products.
Metals Acquisition Corp's silver products are used in industrial applications, including solar panels and water purification systems.
Metals Acquisition Corp's zinc products are used in galvanizing other metals to prevent corrosion.
Metals Acquisition Corp's lead products are used in batteries, radiation shielding, and pigments.
Metals Acquisition Corp's nickel products are used in alloys, such as stainless steel, and in electroplating.
The threat of substitutes for Metals Acquisition Corp is moderate, as there are alternative materials that can be used in place of metals, but they may not offer the same level of quality or performance.
The bargaining power of customers for Metals Acquisition Corp is low, as customers have limited options and the company has a strong market presence.
The bargaining power of suppliers for Metals Acquisition Corp is moderate, as suppliers have some negotiating power due to the specialized nature of the metals industry.
The threat of new entrants for Metals Acquisition Corp is high, as the industry is attractive and there are low barriers to entry, making it easy for new companies to enter the market.
The intensity of rivalry for Metals Acquisition Corp is high, as the industry is highly competitive and companies are constantly competing for market share.
| Value | |
|---|---|
| Debt Weight | 62.92% |
| Debt Cost | 3.95% |
| Equity Weight | 37.08% |
| Equity Cost | 3.92% |
| WACC | 3.93% |
| Leverage | 169.66% |
Value: 5.5
Growth: 6.6
Quality: 3.7
Yield: 5.0
Momentum: 3.5
Volatility: 5.3
1-Year Total Return ->
Value: 5.7
Growth: 4.3
Quality: 5.9
Yield: 0.0
Momentum: 6.0
Volatility: 7.7
1-Year Total Return ->
Value: 9.2
Growth: 4.3
Quality: 4.2
Yield: 0.0
Momentum: 8.5
Volatility: 2.0
1-Year Total Return ->
Value: 6.2
Growth: 3.2
Quality: 6.5
Yield: 0.0
Momentum: 2.5
Volatility: 6.7
1-Year Total Return ->
Value: 8.4
Growth: 6.4
Quality: 4.7
Yield: 0.0
Momentum: 1.0
Volatility: 2.3
1-Year Total Return ->
Value: 8.2
Growth: 0.3
Quality: 4.6
Yield: 0.0
Momentum: 5.0
Volatility: 1.7
1-Year Total Return ->