Canadian miner gives copper a belated deal patina 25 Sep 2019 China’s biggest producer of the metal may have built a nearly 10% stake in $6 bln First Quantum, and is negotiating to invest in its Zambian assets. The low price of copper, and depressed industry valuations, make it a good time to do more. It puts Rio Tinto on the M&A spot.
Hong Kong’s first UK exchange foray clouds second 20 Sep 2019 Its 2012 takeover of the London Metal Exchange promised to preserve the institution and expand in China. Hong Kong’s bourse honoured the first, but Beijing made its own way in commodities. Returns have been poor too. That history informs its $37 bln London Stock Exchange bid.
Gold would shine brighter in thick of currency war 21 Aug 2019 Trade and geopolitical tensions have heightened demand for safe havens, but with policymakers trying to keep currencies down, the dollar, yen and Swiss franc offer only partial protection. The yellow metal is different. No one will push back if its price keeps rising.
Russia’s En+ swaps one U.S. headache for another 16 Aug 2019 The Rusal holding company escaped punitive Washington sanctions in the first half. But Donald Trump’s trade war pummelled aluminium prices, leading to a sharp drop in EBITDA. Investors face a long wait to get anywhere near their 2017 IPO price.
Iron ore feels the pinch of Beijing’s restraint 15 Aug 2019 Prices of the steel ingredient have cooled, as a supply squeeze fades but a hoped-for Chinese boost to demand remains elusive. Mainland growth is lacklustre, but construction has yet to rev up in response. Stimulus this time may not mean more bridges: bad news for Rio and peers.
Barrick CEO lets hard image slip for sensible deal 19 Jul 2019 Mark Bristow will, after all, pay up to buy out 36% of Acacia Mining in a transaction worth over 50% more than the gold miner’s offer in May. It’s a small victory for minority owners, whose company is under fire from Tanzania’s government. But for everyone, it beats a standoff.
Congo deaths are a new stick to beat Glencore 27 Jun 2019 The Swiss commodity giant’s shares fell 5% after an accident killed dozens of illegal miners at one of its DRC pits. It’s difficult for resource groups to stop these incursions. But Kinshasa’s record of miner shakedowns implies it might still find a way to penalise Glencore.
Exchange-traded funds will keep gold glittering 21 Jun 2019 The yellow metal’s price has broken $1,400 an ounce and touched highs last seen in 2013, thanks to scope for lower U.S. interest rates and Gulf tensions. Yet holdings in the largest gold-backed ETFs are only just joining the rally. That should mean bullion keeps its shine.
Thorny Acacia pricks Barrick boss’s Africa bubble 11 Jun 2019 The bullion miner’s minority shareholders look set to spurn a 226 mln pound bid from its Canadian parent, prolonging a tax row with Tanzania. That’s a blow for CEO Mark Bristow’s status as an African gold guru. His hardball tactics are also unlikely to impress other partners.
En+ chair gets relatively meagre sanctions bonus 2 May 2019 The Russian energy group has given Chairman Greg Barker $4 mln for successfully lobbying against U.S. sanctions, Bloomberg says. En+’s market value is up $1.5 bln since it avoided the strictures. Paying 0.3 pct to detoxify its business is a reasonable exchange.
John Paulson gives Newmont late but valid advice 22 Mar 2019 The gold miner’s $10 billion Goldcorp offer terms aren’t good enough for the hedge fund manager, who owns a 2.7 percent stake. He has a point – recent gold deals haven’t featured premiums. But his campaign might have gained more traction had he started earlier.
Barrick wisely decides harmony is golden 11 Mar 2019 The gold miner has struck a joint venture with Newmont, an $18 bln rival it earlier tried to acquire. Both sides should win. Newmont gets to pursue its own deal with Goldcorp. Barrick shareholders are spared the risk of an aggressive merger that left them with little to gain.
Barrick can learn from mining’s golden oldies 6 Mar 2019 The gold miner seems to be warming to the idea of a joint venture rather than a merger with $18 bln rival Newmont. There’s a precedent: a decade ago BHP ditched a hostile bid for Rio Tinto in favor of a friendly iron-ore tie-up. That failed, but this time can be different.
Barrick gamble is one part logic, two parts folly 22 Feb 2019 The gold giant is eyeing a hostile move for $19 bln rival Newmont, the Globe and Mail says. The merger has been mooted before and may yield synergies, but the buyer has just acquired Randgold and the target is buying Goldcorp. It sounds badly timed and poorly considered.
Agarwal’s Anglo carve-up has a new stumbling block 21 Feb 2019 The Indian tycoon’s rent of a fifth of the mining group’s shares implies he might want to lobby for a breakup. To do so he’ll need to get Anglo American’s next biggest investor, South Africa’s state pension fund, on side. That’s beginning to look less and less likely.
Hyperactive Elliott leaves Arconic in disarray 6 Feb 2019 The parts maker has a new CEO - its fourth since Paul Singer’s hedge fund first invested in 2015. The activist pushed out ex-boss Klaus Kleinfeld, helped pick most directors and backed a failed buyout by Apollo. Its minority stake has made it a force for agitation, not stability.
Deripaska markdown will persist at En+ and Rusal 28 Jan 2019 The Russian metals groups have been freed from U.S. sanctions. Though their shares have perked up, they still trade below pre-sanctions level. Given the risk of new penalties should previous majority owner Oleg Deripaska exercise control, the valuation gap will linger.
Oleg Deripaska’s En+ deal is more sour than sweet 23 Jan 2019 The settlement that distanced the Russian oligarch from his power company has favourable aspects, the New York Times says. Certain provisions could even limit the financial hit from U.S. sanctions still in place against him. The overall outcome is, however, still pretty painful.
Arconic lays bare limits of activist minority rule 22 Jan 2019 Elliott had a hand in appointing most directors, the CEO and the chairman, and encouraged a sale to Apollo. The board has nixed the deal, tanking the stock. Paul Singer’s firm tried to get its way with only a smallish stake; it now owns the company’s problems, not their solution.
Size matters less than gold miners think 17 Jan 2019 Newmont's $10 bln Goldcorp purchase creates a behemoth, and the U.S. miner has talked up options from extra assets, plus steady output and dividends. But its investors are right to be sceptical. Management will have to over-deliver on synergies to secure them a good return.