Just a quick comparison of some sales this past year. As you can see they are paying a higher price per pound of copper reserve than we have been discussing. (I don't have time to look into it further right now.)
UPDATE 1-Glencore to close $475 mln Mina Justa deal in Oct
Mon Jul 18, 2011 3:47am EDT
* Glencore buying a 70 pct stake
* Mina Justa has 413.3 mln tonnes with 0.79 pct copper
* Paying $0.54 per pound of copper reserve -Liberum
LONDON, July 18 (Reuters) - Glencore , the world's largest diversified commodities trader, expects to close its $475 million acquisition of a 70 percent stake in the owner of Peru's Mina Justa copper project in October, it said on Monday.
Hong Kong-listed CST Mining Group announced last month it had sold its CST Resources unit to Glencore. CST Resources indirectly owns 70 percent of Marcobre, the sole owner of the Mina Justa project, which has a resource of 413.3 million tonnes with 0.79 percent copper.
Glencore's head of zinc, copper and lead said Mina Justa complemented Glencore's existing mining operations in Peru.
The industry is seeing a round of copper consolidation, the latest example of which being China's Jinchuan's beating Brazil's Vale with its bid for South African-listed miner Metorex earlier in July.
Analysts at Liberum said on Monday that Glencore would be paying $0.54 per pound of copper reserve against $0.94 per pound in Jinchuan's bid for Metorex.
"While the 43 percent discount reflects the earlier development status of the project, the deal nevertheless looks to be attractively priced for Glencore and further underscores Glencore's aspirations to realise rapid growth through organic and opportunistic acquisitive growth," Liberum analysts said.
Glencore shares were down 0.6 percent at 0728 GMT, marginally outperforming a one percent drop in the sector.
--http://www.reuters.com/article/2011/07/18/glencore-idAFL3E7II0PU20110718
