MOD Resources


AU$148m market cap

AU$0.44 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 MOD Resources through a scheme of arrangement. The offer from Sandfire is at a 45% premium to the closing price on 24 June 2019 and values MOD Resources at A$167m on a fully diluted basis.

Y/E Dec
Revenue (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
Industry outlook

The scheme is subject to approval by MOD shareholders, as well as regulatory and court approvals, independent expert sign-off and other standard conditions. An explanatory booklet that included an independent expert’s report and further details on the transaction has been sent to MOD shareholders. This will be followed by a meeting of MOD shareholders, expected to be held in October 2019, to approve the scheme.

Last updated on 31/10/2019
Share price graph
Balance sheet
Forecast net debt (A$m) 13.8
Forecast gearing ratio (%) 24
Price performance
Actual 0.0 2.4 37.9
Relative* 0.1 4.4 19.5
52-week high/low A$0.4/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