CST Mining sells Mina Justa copper project in Peru to Glencore

Recently, China Ke Mining stated that it has entered into a memorandum of understanding with global bulk commodity trading giant Glencore to plan to sell Mina, located in South Peru, at a consideration of US$475 million (approximately HK$3.705 billion) before October 15 of this year. 70% equity interest in Justa Copper Project. China Mining vice-president Owen said that if it is sold smoothly, it will consider repaying the high cash value of the sale to shareholders through stock repurchase or special dividend distribution, thereby enhancing investor confidence.

Morgan Stanley pointed out that if the company could successfully sell the Mina Justa copper project to Glencore for US$475 million, it will push up China Miner’s stock price to HK$0.33. CHURCHILL CAPITAL said that if the sale is going well, the current net assets of China Science Mining can reach HK$0.34 per share, based on the current annual output of 30,000 tons of copper in Lady Annie's four-year copper project in China. In addition, if the lifetime of the Lady Annie mine can be extended for another 11 years, the net asset value will rise to HK$0.42 per share.

Owen said that the Lady Annie project has huge exploration potential. After the project resources are converted into reserves, the mine life expectancy can be extended to more than 7 years. Morgan Stanley pointed out that in the most ideal circumstances, it is expected that further exploration plans will increase Lady Annie's resources by 50% and mine life expectancy will extend to more than 10 years. In addition, Damon Barber, Chief Executive Officer of China Ke Mining, revealed that the current total resources of the Lady Annie copper project are estimated at 65.2 million tons of copper (4.66 million tons of copper metal), which has been greatly increased from the mineral resources estimated in the previous year. 34%.