Metals Acquisition plans to list on 6 March and if you’re thinking about investing you need to look into the value of their key asset, the CSA copper mine. According to a recent investor presentation, here are the estimates:

This is a breakdown of the Mineral Resources and Reserves for CSA Mine, a key asset of Metals Acquisition. The resources are categorized based on confidence levels and include ore quantity, copper (Cu) grade, copper content, silver (Ag) grade, and silver content. As of today (2 February 2024), the copper price stands at about USD 3.85/lb.

• Proven Reserves:
• Ore: 4.8 million tonnes (Mt)
• Cu Grade: 4.3%
• Cu Content: 208.8 kilotonnes (kt)
• Ag Grade: 17.8 g/t
• Ag Content: 2.8 million ounces (Moz)
• Probable Reserves:
• Ore: 3.1 Mt
• Cu Grade: 3.5%
• Cu Content: 105.3 kt
• Ag Grade: 13.5 g/t
• Ag Content: 1.3 Moz
• Total Reserves:
• Ore: 7.9 Mt
• Cu Grade: 4.0%
• Cu Content: 314.1 kt
• Ag Grade: 16.1 g/t
• Ag Content: 4.1 Moz
• Measured and Indicated (M&I) Resources:
• Ore: 0.0 Mt (Note: Resources at M&I level are not currently specified)
• Inferred Resources:
• Ore: 3.5 Mt
• Cu Grade: 5.6%
• Cu Content: 193 kt
• Ag Grade: 20 g/t
• Ag Content: 2.2 Moz
• Total Resources:
• Ore: 3.5 Mt
• Cu Grade: 5.6%
• Cu Content: 193 kt
• Ag Grade: 20 g/t
• Ag Content: 2.2 Moz

Speculation on Copper Value of Metals Aquisition’s Assets

Given the current copper price of USD 3.85/lb, the potential value of the proven and probable reserves can be estimated. The total copper content in reserves is 314.1 kt. Multiplying this by the current copper price gives an approximate value of USD 1.21 billion.

Obviously, this is a vastly oversimplified calculation which does not take market dynamics or extraction efficiency into account. Still, it does give you something to think about.

Historical Context

Mines with similar profiles historically have shown resilience and attractiveness to investors. For instance, mines with significant proven reserves, high-grade ore, and diverse mineral resources tend to fare well in the market. The CSA Mine’s combination of proven and probable reserves, along with additional inferred resources, positions it in line with successful mining operations that have contributed significantly to the copper market. However, market conditions, operational efficiency, and global demand trends also play crucial roles in determining the success of mining ventures.