Mining & Metals
Mergers, acquisitions and capital raising in mining and metals
These quarterly reports examine the major global mining and metals transactions, capital markets and resulting capital flows, by considering:
- Mergers and acquisitions
- Capital raising – equity and debt
They also take a closer look at:
Commodities – Aluminium, Coal, Copper, Gold, Iron ore, Nickel, Potash and phosphate, Silver, Lead & Zinc, Steel, Uranium
Countries – Frontier markets, Australia, Brazil, Canada, China, India, Indonesia, Japan, Russia, South Africa, the United Kingdom and the United States
Mining and metals companies are operating in a turbulent and changing environment of cost inflation, slowing economic growth, heightened geopolitical risk and volatile prices. This requires a shift in priorities: from "growth for growth’s sake" to a committed focus on capital optimization.
We expect to see smarter, value-enhancing deal-making. Few can afford to miss opportunities in an era of intense global competition for scarce resources. Read more about the nine months to September trends and the outlook ahead.
In the first six months of 2012, key trends in transactions and financing in the sector included:
- Rapidly escalating costs and softening prices forced companies to rethink investment decisions.
- Deal value and volume fell in 1H 2012.
- Record 1H bond proceeds were raised.
- But junior developers faced greater challenges as risk aversion and volatility inhibited access to capital.
- New capital providers and funding structures will become increasingly important.
Continued volatility impacted the level of mining and metals sector M&A activity. While 1Q 2012 deal volume was on par with 4Q 2011 activity and in value terms 10% lower, M&A volume and value were down 34% and 20% respectively on 1Q 2011.
Recognizing value in volatility
Read the annual report on mergers, acquisitions and capital raising in mining and metals.
With stronger balance sheets, many companies are faced with the challenging but positive decision of how best to utilize their capital — the dilemma of buy, build or return is back on many boardroom tables.
However, the spread of resource nationalism, the US credit rating downgrade, the Eurozone debt crisis and lessening Chinese growth rates caused dramatic stock market volatility and tested the confidence of many mining and metals companies to undertake M&A.
The report examines the major global mining and metals transactions, capital markets and resulting capital flows. It also takes a closer look at the different commodities and markets.