After Blumont Group’s sudden share price slump, many asked if they still planned to invest $108 million in Botswana copper miner Discovery Metals, but the deal is still on.
“Asked on Monday whether Blumont was having second thoughts about the Discovery Metals deal, Blumont Copper CEO Ines Scotland said: ‘Absolutely not. We think the Discovery transaction will add great shareholder value.'” reports Reuters.
“The $108 million investment by Blumont Copper covers an already purchased 11.6 percent stake in Discovery Metals and plans to buy $100 million in convertible bonds. Blumont Copper is 85 percent owned by Blumont Group.”
The week’s biggest mover on the weekly Copper MMI® was the price of US copper producer grade 122, which saw a 0.8 percent decline. Last week marked the fourth in a row of declining prices for the metal. The price of US copper producer grade 110 fell 0.8 percent over the past week. This was the fourth week in a row of declining prices. The price of US copper producer grade 102 fell 0.7 percent over the past week. This was the fourth week in a row of declining prices. The Japanese copper cash price rose 0.1 percent after falling 1.1 percent during the previous week. Korean copper strip prices held steady from the previous week.
Chinese copper prices were flat for the week. The price of Chinese copper bar did not change since the previous week. This past week, the Chinese copper cash price kept quiet. Prices for Chinese copper wire remained constant. Chinese bright copper scrap remained unchanged for the week.
On the LME, the cash price of primary copper traded sideways last week, hovering around $7,215 per metric ton. Also on the LME, the 3-month price of copper closed at $7,245 per metric ton after a flat week.
The Copper MMI® collects and weights 12 global copper metal price points to provide a unique view into copper price trends. For more information on the Copper MMI®, how it’s calculated or how your company can use the index, please drop us a note at: info (at) agmetalminer (dot) com.