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Tag: Çayeli mine

  • First Quantum Sells Turkish Copper-Zinc Mine to Cengiz Holding for $340 Million in Latest Portfolio Restructuring Move

    First Quantum Sells Turkish Copper-Zinc Mine to Cengiz Holding for $340 Million in Latest Portfolio Restructuring Move

    Canadian mining company First Quantum Minerals has agreed to sell its Çayeli copper-zinc mine in Türkiye to Cengiz Insaat, a subsidiary of one of Turkey’s largest industrial conglomerates, for $340 million in cash as the miner continues to streamline its asset portfolio and redirect capital toward its highest-priority operations.

    Under the binding agreement, the sale includes an advance payment of $50 million, with the full transaction expected to close during the second or third quarter of this year. Chief Executive Tristan Pascall described the deal as consistent with the company’s “disciplined approach to portfolio management,” with proceeds intended to support strategic priorities including a potential restart of the Cobre Panama copper operation — one of the world’s largest copper mines, which was shut down in late 2023 following civil unrest in the Central American country.

    Located on the Black Sea coast of northeastern Türkiye, the Çayeli mine has been in continuous operation since 1994, producing copper and zinc concentrates from a volcanic hosted massive sulphide deposit. Its reserve base is currently projected to support operations through to 2036.

    The transaction marks the second asset disposal First Quantum has executed in three months, following the $190 million sale of the past-producing Cobre Las Cruces copper mine in Spain in December.

    For the buyer, the acquisition represents a further aggressive expansion of its mining portfolio. Cengiz Holding last week completed its largest mining deal to date — the $1.5 billion purchase of the Copler gold mine in Türkiye from SSR Mining — making the Çayeli transaction the conglomerate’s second major mining acquisition within days.

    Despite the strategic rationale for the sale, First Quantum’s shares initially rose on the news before reversing course, closing down 1.7% by midday at a market capitalisation of approximately C$27.5 billion ($20.2 billion). UBS analyst Myles Allsop nonetheless upgraded the stock to a Buy rating from Neutral, raising his price target to C$50 from C$38, signalling confidence in the company’s refocused strategy.

  • First Quantum to Sell Çayeli Copper-Zinc Mine in Türkiye for $340 Million

    First Quantum to Sell Çayeli Copper-Zinc Mine in Türkiye for $340 Million

    First Quantum Minerals has agreed to sell its Çayeli copper-zinc mine in Türkiye to a company controlled by Cengiz Holding as part of the Canadian miner’s strategy to focus on core assets.

    Under a binding agreement, Cengiz Insaat will acquire the underground mine for $340 million in cash, including an upfront payment of $50 million. The transaction is expected to strengthen First Quantum’s balance sheet as the company allocates capital toward key projects.

    Chief executive Tristan Pascall said the divestment reflects the company’s disciplined portfolio management approach as it prioritizes strategic assets, including efforts to restart the Cobre Panama operation.

    “For more than a decade, the performance of Çayeli within First Quantum has been underpinned by the dedication of its employees and a strong safety and operating culture,” Pascall said.

    Cengiz Holding, one of Türkiye’s largest industrial conglomerates, has been rapidly expanding its mining portfolio. The group recently announced a $1.5 billion acquisition of the Copler gold mine from SSR Mining, marking its largest mining deal to date.

    Located on the Black Sea coast in northeastern Türkiye, the Çayeli mine has been operating since 1994. The underground operation produces copper and zinc concentrates from a volcanic-hosted massive sulphide deposit and is expected to remain in production until around 2036.

    The sale represents the second recent asset divestment by First Quantum. In December, the company sold the past-producing Cobre Las Cruces copper mine in Spain for $190 million.

    Shares of First Quantum initially rose after the announcement but later reversed gains. By midday trading, the stock was down about 1.7%, giving the company a market capitalization of approximately C$27.5 billion ($20.2 billion).

    Despite the decline, UBS analyst Myles Allsop upgraded the stock rating to “Buy” from “Neutral” and raised the price target to C$50 from C$38, citing improved financial flexibility and portfolio focus.