Glencore has completed the sale of its 100% owned Cobar copper mine in New South Wales to Metals Acquisition (MAC).
Switzerland-based Glencore will receive US$775 mln in cash and US$100mln in shares giving it a 20.6% stake in MAC.
Additional considerations included in the deal are a US$75m deferred payment to be paid within 12 months; a US$150mln contingent payment based on future copper prices and a 1.5% life of mine Net Smelter Return royalty.
MAC will assume full operational control of the mine with Glencore taking all of the copper produced under an offtake deal.
Brokers said the deal marks the second big non-core divestment for Glencore this week, following the Bunge-Viterra deal earlier.
Citi said that deal, which will generate US$4.1bn in cash and shares for Glencore, was at the lower end of its valuation range, but added the share price had contained for its eventuality.
Viterra (TSX:VT) was accounted for as an associate with GLEN's share of net income (US$0.5bn in 2022) included within Marketing corporate costs.
The Viterra sale was another positive step in simplifying the portfolio and monetising non-core stakes, said the broker, which has a 560p price target and 'buy' rating.
Shares today were little changed at 474.1p.