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New Century delivers 500,000th tonne of zinc concentrate • CIMIC sells 50 per cent of Thiess to Elliott
CIMIC sells 50 per cent of Thiess to Elliott
CIMIC Group has completed the sale of a 50 per cent interest in Thiess, the world’s largest mining services provider, to international fund managers Elliott Advisors. The sale agreement, originally announced last October, valued Thiess at $4.3 billion. Thiess delivers open cut and underground mining in Australia, Asia, Africa and the Americas, providing services to 25 projects across a range of commodities. It has a diverse fleet of plant and
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equipment of more than 2,200 assets, a team of around 14,000 employees and generates annual revenues in excess of A$4.1 billion. Elliott is one of the oldest fund managers of its kind under continuous operation and manages more than US$40 billion in assets, including equity positions in private and listed companies, in Australia and globally. The transaction will strengthen CIMIC’s balance sheet by generating cash proceeds as well as reducing its factoring balance by approximately A$700 million and its lease liability balance by approximately A$500 million. It will also allow CIMIC to retain a strategic interest in its core mining operations while maintaining a balanced and diversified business portfolio.
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New Century Resources has reached a major milestone, producing its 500,000th tonne of zinc concentrate since the recommencement of operations in August 2018.
The company has also executed a zinc price hedging program for the
remainder of FY21, securing put contracts to guarantee a floor price of US$1.20/lb for 100% of sales in the March ’21 quarter and 50% of sales in the June ’21 quarter. “The milestone of producing 500,000 tonnes of zinc concentrate is a significant achievement for the company and testament to the efforts of our team on site, as well as our strong culture and partnerships with stakeholders throughout the region,” said Managing Director, Patrick Walta. “In addition, New Century’s hedging program has successfully locked in the current buoyant market conditions for the remainder of the financial year, while also providing full exposure to further zinc price improvement. “The company sees strong potential for zinc price upside, given the
continued demand from growth within China and the likely near-term improved demand around the world as infrastructure-focused government stimulus packages are rolled out. “This demand is in contrast to continued global supply challenges, with traditional underground miners facing additional operational difficulties in improving production while also implementing social distancing and Covid-19 mitigation practices.”
