Mining

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.

Climate fight at Mizuho previews wider clash

9 April 2020

An investor group is urging the $29 bln finance giant to reduce lending for coal. With Japan in a state of coronavirus emergency, it’s an odd time to pick this battle, nor is Mizuho in charge of national energy policy – the real problem. But activists have to start somewhere.

Animal spirits temper gold miners’ virus appeal

25 February 2020

An outbreak of the coronavirus in Italy boosted the price of bullion. While producers of the yellow metal stand to gain from higher prices, a global pandemic could hit some production. The bigger risk is CEOs squandering the windfall on unprofitable ventures or expensive M&A.

Glencore split could spring-clean dusty valuation

18 February 2020

The commodity giant’s coal operations dragged in 2019. Spinning them off into a separate entity would underline the low-carbon potential of the copper and cobalt assets left behind. That could leave billionaire CEO Ivan Glasenberg with a more valuable overall cake.

BHP’s best-laid plans may go awry for new boss

18 February 2020

The mining giant delivered a 39% rise in half-year profit, giving a running start to CEO Mike Henry. Since assuming the role on Jan. 1, virus-hit China has threatened iron ore demand. A strategic focus on investing in growth and returning capital to shareholders could be on hold.

Vale dam cleanup hints at miners’ rising ESG bill

21 January 2020

The world’s top iron ore producer faces criminal charges for a deadly 2019 dam collapse. It has spent billions on reparations and safety upgrades, and seen its share price stumble. The total financial hit is yet to become clear, but other resources firms will face reckonings too.

Anglo’s tricky fertiliser bet has political hedge

8 January 2020

The miner is sinking $500 mln to buy Sirius’ troubled potash project in northern England. It will need to stump up an extra $3 bln to extract the mineral, whose price is murky. At least PM Boris Johnson, keen to revive poorer UK regions, should support Anglo American’s plan.

Glencore’s new probe applies shove to succession

5 December 2019

British police are investigating possible bribery at the commodity giant. Two days ago 62-year-old boss Ivan Glasenberg, whose firm also faces a U.S. probe, said he could retire next year. Having to fight a legal war on two fronts may help him make up his mind.

ArcelorMittal win will help India heal debt wounds

15 November 2019

The country’s top court squashed a decision that threatened the steelmaker’s $6 bln bid for Essar through a new bankruptcy regime. The Mittal family’s homecoming can go ahead. It’s also a timely boost for lenders and investors needed to re-energise the flagging economy.

BHP boss hands over big shovel to successor

14 November 2019

Andrew Mackenzie departs the world's largest miner next month, leaving it in better shape than he found it. Veteran Mike Henry will face fresh challenges. He must make and sell a decision on a $20 bln potash project, and steer the steel ingredient producer into a greener era.

ArcelorMittal gets convenient alibi for Italexit

8 November 2019

The steel giant wants to pull out from an agreed purchase of top European plant Ilva, blaming its loss of legal immunity. Quitting would spare ArcelorMittal the cost of upgrading the toxic site. That’s handy while global steel consumption is seen to be falling.

Mongolia’s coal IPO squeezes through narrow hole

6 November 2019

Ulaanbaatar has picked advisers to list part of its prize mine. It's a tough sell: a landlocked deposit with only one market, a history of political meddling and a decade of false starts. Still, Chinese backing and an upcoming election might help Mongolia pull it off this time.

Restive Chile squeezes copper’s big short

23 October 2019

Violent protests halted work at the world's largest mine for the red metal, adding to disruptions elsewhere. The price of copper, however, is not far off a 2019 low, and the market anticipates further weakness. Pessimistic noise on global trade is drowning out supply signals.

Chile protests give investors a rude awakening

21 October 2019

Latin America’s golden child erupted in violence this past weekend over a subway-fare hike. Its economy seems strong for an emerging market, but the unrest comes amid slowing growth, a weakened currency and a feeble copper market. Bondholders aren’t pricing in the risks.

India’s coal-fired growth requires some shovelling

30 August 2019

New Delhi, trying to juice the economy, will allow 100% foreign investment in the fuel. Local demand is rising, but resource giants have had bad experiences on the ground, and big miners are pulling out of thermal coal. India will have to work hard to make its tardy policy work.

BHP boss makes himself tougher act to follow

20 August 2019

The miner reported a record $3.9 bln final dividend alongside its highest earnings in five years. Even as CEO Andrew Mackenzie conserves cash ahead of economic clouds and the end of his tenure, he has fulfilled shareholder return pledges. Any successor will face harder choices.