Aeris Resources (ASX:AIS) share price slips on response to media article

The company’s shares are backtracking today…

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Downward red arrow with business man sliding down it signifying falling asx share price.

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The Aeris Resources Ltd (ASX: AIS) share price is heading south during mid-afternoon trade on Monday. This follows a speculative media report that the copper miner is believed to be contending for Glencore’s CSA mine.

At the time of writing, Aeris shares are fetching for 19.5 cents apiece, down 2.50%.

What happened?

According to The Australian, Aeris Resources is believed to be competing with 29Metals Ltd (ASX: 29M) for the CSA mine.

Located in the town of Cobar, New South Wales, the CSA asset is one of Australia’s highest-grade copper mines. It produces around 50,000 tonnes of copper each year, with processing onsite for export to smelters in Asia.

Aeris Resources responded to the media speculation advising that its aware of Glencore seeking proposals for its CSA asset. As such, it reiterated that it has a clear-cut strategy for promoting organic growth and evaluating strategic opportunities.

The company noted that the latest developments do not indicate whether it will proceed with a particular transaction.

It’s worth noting that this is the third time that Glencore has tried to offload its copper mine.

In 2015, the company decided to sell the CSA mine in a bid to drive down its growing debt profile. However, after coal prices surged that year, Glencore quickly pulled its listing off the market. 

Four years later, Glencore recommenced its sales efforts after receiving offers to purchase the mine. Aeris Resources originally planned to acquire the asset for US$575 million but the deal fell through. Both parties were not able to ultimately agree on the terms of the sale.

Aeris Resources share price snapshot

Over the past 12 months, Aeris Resources shares have rocketed by more than 190%. When looking at this year alone, its shares have recorded gains of above 90%, reflecting continued positive sentiment among investors. 

Based on today’s price, Aeris Resources has a market capitalisation of roughly $429.25 million, with more than 2.2 billion shares outstanding.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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