AU$130.8m market cap
AU$0.43 last close
MOD Resources is an ASX-listed exploration and development company focused on the Kalahari Copper Belt of Botswana. The flagship T3 deposit has a JORC 2012 compliant mineral resource estimate of 60Mt at a grade of 0.98% copper.
Investment summary
The board of MOD Resources, which holds a 7% interest in the company, has unanimously recommended that shareholders accept the offer by Sandfire Resources (SFR.ASX) to acquire 100% of MOD Resources through a scheme of arrangement. The offer from Sandfire is at a 45% premium to the closing price on 24 June 2019 and values MOD Resources at A$167m on a fully diluted basis.
Y/E Dec |
Revenue (A$m) |
EBITDA (A$m) |
PBT (A$m) |
EPS (c) |
P/E (x) |
P/CF (x) |
|---|---|---|---|---|---|---|
| 2017A | 0.0 | (2.5) | (2.3) | (1.3) | N/A | N/A |
| 2018A | 0.0 | (5.7) | (5.4) | (2.5) | N/A | N/A |
| 2019E | 0.0 | (4.0) | (5.4) | (1.8) | N/A | N/A |
| 2020E | 0.0 | (4.2) | (5.6) | (1.2) | N/A | N/A |
Industry outlook
The scheme is subject to approval by MOD shareholders, as well as regulatory and court approvals, independent expert sign-off and other standard conditions. An explanatory booklet that will include an independent expert’s report and further details on the transaction will be sent to MOD shareholders in late August 2019. This will be followed by a meeting of MOD shareholders, expected to be held in October 2019, to approve the scheme.
Last updated on 25/07/2019
Sector |
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| Metals & mining |
Share price graph
Balance sheet |
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| Forecast net debt (A$m) | 13.8 |
| Forecast gearing ratio (%) | 24 |
Price performance
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Key management |
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| Stef Weber | CFO |
| Jeffrey Sansom | IR Manager |
| Julian Hanna | Managing Director |
| Mark Clements | Executive Chairman & Company Secretary |
