Rio Tinto To Acquire Chilean Exploration Assets And Enter Joint Venture With Codelco; Will Acquire PanAmerican Silver's 57.74% Operating Stake In Agua De La Falda For $45M, 100% Meridian Property for $550K And The Grant Of New Smelter Returns Royalties
Portfolio Pulse from Happy Mohamed
Rio Tinto has agreed to acquire PanAmerican Silver's 57.74% stake in Agua de la Falda for $45 million and 100% of the Meridian Property for $550,000. Rio Tinto will also enter a joint venture with Codelco to explore and potentially develop Agua de la Falda's assets. The joint venture builds on a previous collaboration agreement between Rio Tinto and Codelco aimed at improving safety, productivity, and ESG outcomes.
July 31, 2023 | 7:50 pm
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NEUTRAL IMPACT
PanAmerican Silver's sale of its stake in Agua de la Falda to Rio Tinto could result in a short-term cash influx but may reduce its long-term revenue potential.
While the sale of its stake in Agua de la Falda will provide PanAmerican Silver with a short-term cash influx, it could potentially reduce the company's long-term revenue potential from this asset. The impact on the company's stock price will depend on how it uses the proceeds from the sale and its future revenue prospects.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Rio Tinto's acquisition of stakes in Agua de la Falda and the Meridian Property, and its joint venture with Codelco, could potentially increase its copper production and revenues in the future.
The acquisition of these assets and the joint venture with Codelco could potentially increase Rio Tinto's copper production, which is critical for the global energy transition. This could lead to increased revenues and profitability for the company in the future.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100