Mining

Kazakh copper takeover looks opportunistic

28 October 2020

Kaz Minerals’ chairman and its biggest shareholder are offering 3 bln pounds for the London-listed miner. It’s a tiny 12% premium and selling now would mean missing out on the gains from a battery-powered boom. But with little hope for a rival deal, investors may still accept it.

Corona Capital: U.S. tests, UK loans, Man U groans

21 October 2020

Concise views on the pandemic’s corporate and financial fallout: Abbott Laboratories has a bumper third quarter; UK banks look at a workaround for their Covid-19 loan problem; and Manchester United reveals a predictably ropey set of annual results.

Vedanta’s failed buyout is Agarwal’s comeuppance

12 October 2020

The indebted tycoon’s effort to take private his $5 bln Mumbai company has backfired. Technical glitches compounded a quirky delisting process that empowers minority investors. After years of Agarwal’s opportunistic toying with the stock market, shareholders have the upper hand.

Aussie gold miners make deal wishes come true

6 October 2020

Northern Star is acquiring smaller rival Saracen for $4.1 bln. They’ll share a heap of promised synergies without a premium to pay for using a structure touted by an industry shareholder group. The buyer’s track record also should mitigate some typical merger concerns.

Rio Tinto gets bad recruitment steer from Canberra

15 September 2020

Australia’s treasurer wants the miner’s next CEO to be Australian, after Frenchman J-S Jacques stepped down over the destruction of an Aboriginal site. Cultural sensitivity is a priority, but the goal can be achieved in other ways. Shareholders deserve the best boss Rio can find.

Rio Tinto rebellion sets new ESG bar

11 September 2020

CEO J-S Jacques and two deputies will step down after an outcry over the miner's destruction of Aboriginal heritage sites. Aussie shareholders led a charge that may inspire other socially conscious investors. Bosses and boards hiding behind strong returns have been given notice.

Rio Tinto board can choose CEO – at expense of ESG

10 September 2020

Many shareholders want harsher punishments for the mining giant’s destruction of Aboriginal heritage sites. Robust returns are one reason to stop short of axing boss Jean-Sebastien Jacques. If he stays, though, Rio’s responsible investing credentials will be deeply discounted.

De Beers’ rocks are in an increasingly hard place

3 September 2020

Even before Covid-19, the Anglo American-owned diamond giant’s lunch was being eaten by Russia’s Alrosa and cheaper man-made stones. De Beers still has access to Botswana’s high-quality gems. But lockdowns are blunting the edge its quirky sales method has enabled.

Corona Capital: Davos delay, Political TV ratings

26 August 2020

Concise views on the pandemic’s corporate and financial fallout: The World Economic Forum’s annual winter meeting becomes a summer gathering; and in the U.S., the Democrats’ online spectacle leads TV ratings over the Republicans’ more traditional convention.

Buffett’s crisis-fighting machine is broken

24 August 2020

When Berkshire Hathaway takes a stake in a gold miner or cuts some bank holdings, investors notice. But these trades offer little insight into the Oracle of Omaha’s downturn game plan. Dig deeper, and it seems his philosophy hasn’t changed much – it just no longer works.

Glencore’s Glasenberg shows odd dividend caution

6 August 2020

The gunslinging boss of the big miner-trader is holstering this year’s $2.6 bln dividend. The company blames coronavirus uncertainty, but Glencore’s cash flow is holding up and metal prices are mostly recovering. The South African may be bracing for a hefty U.S. corruption fine.

All sides could gain from $42 bln NorNickel reset

28 July 2020

An agreed management shakeup would protect the role of CEO Vladimir Potanin, who holds 35% in the Russian miner, and dodge legal disruption. Rusal, with 28%, could eke out more control. Other investors would get a better-run company, and a lower risk of ecological catastrophe.

Gold’s enduring high gives miners room to be bold

10 July 2020

Bullion has breached $1,800 per ounce amid fears of a viral surge. Mine bosses’ enthusiasm to develop lower grade reserves that only make sense at exalted price levels is usually dampened by worries of a sharp snapback. An extended Covid-19 tail means more will take the chance.

Gold mining in Greenland is smarter than it sounds

3 July 2020

Canada’s AEX Gold wants to raise 45 mln pounds via a UK listing to reopen a mine on the North Atlantic island. The tricky location and fickle bullion prices are obvious risks. The potential returns and scope to gain a head start in a local resource scramble are opportunities.

Tesla kills three birds with one Congolese stone

17 June 2020

The electric car giant is buying 6,000 tonnes of cobalt a year from Glencore’s mines in the chaotic African state. With China corralling 69% of the metal’s production, Elon Musk gets to guarantee supplies while minimising child labour worries. It may even squeeze Western rivals.

Corona Capital: Travel companies, Oil

18 May 2020

Concise views on the pandemic’s corporate and financial fallout: Travel companies have sunnier days; oil traders have triumph of hope over experience.

Vedanta minorities can exact a better exit

14 May 2020

Tycoon Anil Agarwal wants to buy out a cash cow of his mining empire for $4.3 bln. True to form, the bid is opportunistically timed after a stock slump. Other shareholders have a route to improved terms but the group’s wider debt issues will limit how hard they push for more.

Corona Capital: HCA Healthcare, Kering

21 April 2020

Concise views on the pandemic’s corporate and financial fallout: The virus helps one part of the U.S. healthcare industry, but harms another; and luxury group Kering's Chinese fortunes may depend on an end to Italy's lockdown.

Glencore mine grab would have a tiny silver lining

20 April 2020

Zambia may seize assets, including the commodity giant’s Mopani copper mine, to help with Chinese debt relief, the WSJ says. That would make the African state a pariah and confirm fears of debt-trap diplomacy by Beijing. At least Glencore might win some useful U.S. sympathy.

Corona Capital: Amazon, Procter & Gamble

17 April 2020

Concise views on the pandemic’s corporate and financial fallout: Amazon CEO Jeff Bezos pokes the French government; consumer giant P&G’s good fortune will be hard to keep.