Mining

Rio finds gold plating for Mongolia copper mess

12 April 2021

The $131 bln miner and its partner Turquoise Hill have made peace over financing the troubled Oyu Tolgoi project. It’s a deft solution that tries to get most stakeholders to pitch in. Other prickly issues remain, like getting back into Ulaanbaatar’s good books. But it’s progress.

Anglo American tests shareholders’ ESG bona fides

8 April 2021

The miner is giving investors one share in its spun-off thermal coal unit for every 10 already held. The commodity’s kryptonite status means many European institutions will want to get rid of them for the same reason as Anglo. But rising coal prices may turn some heads.

IPO laggards pay price for predecessors’ chutzpah

30 March 2021

Miner GV Gold, defence firm Leonardo DRS and soccer team Club Brugge shelved their listings. Investors have been stung by the poor performance of a wave of richly valued tech floats earlier this year. With the pipeline still full, hopeful issuers will now have to offer bargains.

Capital Calls: WFH deals, Suez Canal, NorNickel

29 March 2021

Concise views on global finance in the Covid-19 era: Fintech firm Broadridge pays a full price for trading platform; with the waterway clear, all sides will be taking up positions for a legal battle royal; the Russian nickel producer cashes in on high copper prices.

Capital Calls: Sports versus the Trump slump

26 March 2021

Concise views on global finance in the Covid-19 era: Political news startup Axios may merge with sports site The Athletic.

Capital Calls: Digital art

11 March 2021

Concise views on global finance in the Covid-19 era: A blockchain-protected work by Beeple sold for $69 million at Christie's.

South Africa enters greener bond-market crosshairs

11 March 2021

With 90% of its power coming from coal, the Rainbow Nation is one of the worst CO2 emitters. Mining’s political heft also means foot-dragging on climate policy. With big external funding needs, the kick from bond investors when they flick the green switch will hurt hardest.

Capital Calls: OPEC+, Michaels

4 March 2021

Concise views on global finance in the Covid-19 era: Recovery concerns keep a lid on the oil cartel’s supply taps; Apollo tries its hand at craft retailer Michaels.

Rio can use sunny outlook to mend leaky roof

17 February 2021

Jakob Stausholm’s first results benefitted from soaring iron ore prices, allowing the global miner’s new CEO to hike dividends. But he has a messy situation in Mongolia to resolve, and governance issues. Better to spend time and money fixing these than on splashy new deals.

Coal wobble flags Glencore’s green high-wire act

16 February 2021

The commodity giant’s EBITDA from the black stuff collapsed in 2020 to just $1.2 bln. Given his increasing climate consciousness, departing CEO Ivan Glasenberg should be happy. But it also shows the risks of a green pivot that requires coal to be used as a financing bridge.

BHP boss gets extended Chinese honeymoon

16 February 2021

Covid-19 infected Mike Henry’s first year as the miner’s CEO, but high iron ore prices driven by demand from the People’s Republic just paid for a record $5.1 bln dividend. They also buy him extra time to grapple with a dual listing, potash plans and Beijing’s ban on Aussie coal.

Anglo takes quick, dirty route to greener pastures

8 February 2021

The miner may dump its African coal unit, worth maybe $1 bln. A spinoff could add six times that sum to the $45 bln group’s value by luring eco-conscious investors. Yet it doesn’t cut global emissions, and Anglo American’s iron ore assets may soon feel the environmental heat.

Kaz Minerals minorities should quit while ahead

4 February 2021

The copper miner’s two biggest investors have increased their takeover bid to 3.7 bln pounds. The new offer is still not exactly a knockout, but Kaz Minerals warrants a discount given much of its value is tied up in one risky project. Minorities should take what’s on the table.

BHP’s dual-listing dilemma gets ESG nudge

3 February 2021

The spread between the $160 bln miner’s Aussie and UK shares is at its highest since 2011. Tax perks mean the equity Down Under should trade at a premium, but distaste for fossil fuels among British funds is helping widen the gap. It’s time to reconsider collapsing the structure.

Glencore unearths copper-bottomed Zambian lifeboat

19 January 2021

The miner is exiting the African state by lending it $1.5 bln to buy its Mopani stake. Linking repayment to the mine’s future copper revenue cuts Glencore’s risk. Lusaka’s bulging debt pile, and its history of disastrous state ownership, gives taxpayers less reason to celebrate.

New Rio Tinto boss has Mongolian bullet to bite

18 January 2021

Atop Jakob Stausholm’s to-do list is sorting out the miner’s troubled $10 bln Oyu Tolgoi copper project. Satisfying Ulaanbaatar, pushy hedge funds and minority shareholders at once will be impossible. Raising equity and reworking a sticky loan structure are the least-bad options.

Rio’s new CEO reflects its lack of wiggle room

17 December 2020

Finance director Jakob Stausholm is the surprise choice to lead the $126 bln miner. Rio’s self-imposed difficulties in Mongolia and Australia meant an outsider might have been preferable. But given Rio may feel the need to soon replace its chairman, continuity is also important.

Rio Tinto’s CEO search just got even harder

10 December 2020

A scathing government report over the Australian miner’s destruction of Aboriginal sites calls for sweeping changes. It portends a long slog to repair the $120 bln company’s reputation. Corporate governance and climate issues add to the daunting challenges concerning growth.

Hitachi unit buyout requires steely resolve

8 December 2020

KKR and Bain are among the suitors for the Japanese conglomerate’s $6 bln metals business. The company has fallen on especially hard times during the pandemic. It will take a big recovery and then some to generate a healthy return on the deal. A carve-up may even be in order.

Mining deal explores Sino-Australian common ground

8 December 2020

Perth-based IGO is in talks to buy a minority stake in a Tianqi Lithium mine for $1.5 bln. The Chinese company could use the money to cover $1.9 bln of debt from its investment in Chile’s SQM. It also would be welcome cooperation amid heated tensions between the two countries.