Boliden, a leading mining company, has recently announced a groundbreaking acquisition deal worth a staggering $1.3 billion, equivalent to 14.3 billion Swedish kronor. This acquisition includes additional conditional payments of $150 million on a cash and debt-free basis, marking a significant milestone in the company’s expansion strategy.
The initial purchase price will be paid in cash and financed through a bridge loan, which is expected to be refinanced through a combination of stock issuance and medium to long-term debt financing. The stock issuance, representing approximately half of the bridge loan, is scheduled to take place in the first half of 2025 either as a fully guaranteed rights issue or a targeted issuance.
The completion of this transaction is anticipated by mid-next year, pending regulatory approvals and other customary closing conditions. Boliden’s press release highlights the strategic significance of this acquisition, emphasizing the synergies and growth opportunities it presents for the company.
Upon completion, this acquisition is poised to significantly enhance Boliden’s earnings per share, with the estimated EBITDA contribution from the Neves-Corvo and Zinkgruvan mines projected to range between $300-350 million annually over the next five years. These mines, previously owned by Lundin Mining, are well-established assets with a strong production track record.
Lundin Mining’s decision to divest these assets reflects its strategic focus on developing copper projects in South America, paving the way for Boliden to capitalize on the operational expertise and resource potential of these mines. With Zinkgruvan producing 76,349 tons of zinc last year and Neves-Corvo yielding 108,812 tons of zinc along with 33,823 tons of copper, these mines are poised to significantly bolster Boliden’s production capacity and market position.
In conclusion, Boliden’s strategic acquisition of the Neves-Corvo and Zinkgruvan mines represents a significant milestone in the company’s growth trajectory, positioning it as a key player in the global mining industry. This deal not only strengthens Boliden’s production capabilities but also underscores its commitment to sustainable growth and operational excellence in the mining sector. With a clear strategic vision and a focus on value creation, Boliden is poised to unlock new opportunities and drive long-term shareholder value through this transformative acquisition.