MOD Resources

AU: MOD

AU$121.5m market cap

AU$0.4 last close

MOD Resources is an ASX-listed exploration and development company focused on the Kalahari Copper Belt of Botswana. The flagship T3 deposit has a JORC 2012 compliant mineral resource estimate of 60Mt at a grade of 0.98% copper.

Investment summary

The board of MOD Resources, which holds a 7% interest in the company, has unanimously recommended that shareholders accept the offer by Sandfire Resources (SFR.ASX) to acquire 100% of the company through a scheme of arrangement. The deal is also supported by Metal Tiger (MTR.LON), which will hold up to 20% of MOD Resources.

Y/E Dec
Revenue (A$m)
EBITDA (A$m)
PBT (A$m)
EPS (c)
P/E (x)
P/CF (x)
2017A 0.0 (2.5) (2.3) (1.3) N/A N/A
2018A 0.0 (5.7) (5.4) (2.5) N/A N/A
2019E 0.0 (4.0) (5.4) (1.8) N/A N/A
2020E 0.0 (4.2) (5.6) (1.2) N/A N/A
Last updated on 25/06/2019
Industry outlook

The feasibility study (FS) for the T3 deposit has demonstrated robust operational metrics with average copper production per annum increasing by 22% to 28,000tpa. While the LOM all-in sustaining cost (AISC) post silver credits increased by 15% to US$3,439/t Cu, the development capex intensity over the LOM decreased by 22% to US$571.6/t Cu. The FS resulted in a 31% increase in the unfinanced pre-tax NPV8 to US$368m versus US$281m in the pre-feasibility study (PFS). The pre-tax IRR has decreased by 15% to 33% in the FS, from 39% in the PFS.

Last updated on 25/06/2019
Share price graph
Balance sheet
Forecast net debt (A$m) 13.8
Forecast gearing ratio (%) 24
Price performance
%
1m
3m
12m
Actual 40.4 29.0 (7.8)
Relative* 36.4 19.0 (13.6)
52-week high/low A$0.5/A$0.2
*% relative to local index
Key management
Stef Weber CFO
Jeffrey Sansom IR Manager
Julian Hanna Managing Director
Mark Clements Executive Chairman & Company Secretary