Market speculation around imminent takeover of Metorex

[bingogo]

ils veulent tous être présent en zambie !


Johannesburg, South Africa --- MININGREVIEW.COM --- 07 April 2011 - South African-based and JSE-listed Metorex Limited ‒ a mid-tier mining group well-known as a base metal operator in Zambia and the Democratic Republic of Congo (DRC) ‒ finds itself in the spotlight, amid market speculation revolving around an imminent takeover bid for the company.

Miningmx reports that, according to market sources, up to three parties could be interested in bidding for Metorex. One of them is believed to be Brazilian resource giant Vale, while another is a Chinese-led consortium.

Metorex put out a cautionary notice last week informing shareholders that it “had entered into discussions which, if successfully concluded, may have a material effect on the price of the company’s securities”.

The company’s share price has risen from around 536c in mid-March to just under 700c currently. According to market sources, the bid price being considered is around 750c.
Metorex CEO Terence Goodlace was not immediately available for comment, and chairperson Rob Still declined to comment when approached.

Metorex’s main asset is the Ruashi copper/cobalt operation in the Democratic Republic of the Congo (DRC), where operations have been brought decisively back on track by Goodlace since he took over as CEO in February 2009.

Prior to that, a series of technical setbacks had delayed the development and ramp-up of Ruashi with disastrous financial consequences for Metorex.

The company also runs the smaller Chibuluma copper mine in Zambia and controls the Kinsenda and Lubembe copper/cobalt projects in the DRC.

Metorex has opted for a strategy of concentrating on its copper operations in the DRC and Zambia. It has disposed of other South African assets such as gold miner Pan African Resources, antimony/gold producer Consolidated Murchison and its fluorspar operations.

Latest production results from Metorex for the March 2011 quarter showed total copper production up by 8% to 13,344t and total cobalt production up by 10% to 1 041t.