Boliden Set to Acquire Lundin's Mines for Up to $1.45 Billion

Swedish mining company Boliden has announced the acquisition of two mines from Lundin Mining. Valued at up to $1.45 billion, the deal includes the Neves-Corvo mine in Portugal and the Zinkgruvan mine in Sweden.

Boliden's CEO, Mikael Staffas, stated that acquiring these cash-flow generating mines makes strong industrial sense and strategic fit for the company. Both Neves-Corvo and Zinkgruvan are underground mines producing zinc, copper, lead, and silver, equipped with processing facilities on-site.

The transaction involves an upfront payment of $1.3 billion and additional contingent payments that could reach up to $150 million. Boliden plans to finance this upfront payment through a combination of equity issuance and borrowing.

The company anticipates that this acquisition will have an immediate positive impact on earnings per share. Over the next five years, the mines are expected to contribute between $300 million and $350 million to the group's earnings before interest, taxes, depreciation, and amortization (EBITDA).

The completion of this acquisition is expected to take place by mid-2025, subject to obtaining the necessary regulatory approvals.

On the other side of the deal, Lundin Mining reported that the transaction is valued at up to $1.52 billion and includes an upfront cash payment of $1.37 billion.