Global mining M&A, capital raising falls in the second quarter
After a flat first quarter, the total value of mining deals – including mergers and acquisitions (M&A), capital raising and asset transactions – declined by $5.3-billion to $20.6-billion in the second quarter, reports data and analytics company GlobalData.
“Mining M&A values dropped by 30.5%, or $2.9-billion, in the second quarter, while there was a 24.8%, or $3.7-billion, drop in the capital raised by mining companies during the second quarter.
"The number of asset transactions, however, rose by 84.9%, with a $1.3-billion increase in value,” says GlobalData senior mining analyst Vinneth Bajaj.
The total volume of deals increased from 860 in the first quarter to 1 411 in the second, owing to an 84.9% increase in the total number of completed asset transaction deals in that quarter.
This was accompanied by a 53.4% increase in the volume of completed capital raising deals.
Canada, Australia, the US and the UK accounted for more than 90% of the total deal volume and more than 50% of the total deal value.
The largest of the completed deals was PT Indonesia Asahan Aluminium’s raising of $2.5-billion by offering three sets of bonds at 4.75% (due in 2025), 5.45% (due in 2030) and 5.8% (due in 2050). Of the total, 60% will be used to pay debts and to acquire 20% of PT Vale Indonesia, while the remaining 40% will be used to refinance the company’s older bonds.
Further, Codelco raised $800-million in an offering of bonds due 2031 to refinance debt and enhance the company’s good liquidity position and improve its amortisation profile over the medium term.
Moreover, Newcrest raised a collective $788-million, out of which $653-million was used to fund the purchase of Fruta del Norte financing facilities in Ecuador and the remainder to fund developments at its Red Chris operations, in Canada, and the Haverion project, in Western Australia.
“Eight of the top ten asset transactions deals involved gold. Topping the list was Mudrick Capital Acquisition Corporation, which acquired an equity interest and assets from Hycroft Mining Corporation for a consideration of $537-million to form Hycroft Mining Holding Corporation,” says Bajaj.
Comments
The
functionality
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation