Commodity prices are rebounding, but don’t expect megadeals in mining as a new crop of CEOs...

Commodity prices are rebounding, but don’t expect megadeals in mining as a new crop of CEOs takes over, WSJ reports. At least 20 mining CEOs have stepped down in the past year, some related to unsuccessful acquisitions, and big deals are unlikely when many CEOs are new to their roles. "There will be M&A but it is likely to be very strategic, brownfield-related and very carefully thought through.”

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Comments (2)
  • TwistTie
    , contributor
    Comments (2429) | Send Message
    The good thing about owning one of the miners is that they can dig a hole for you to crawl into while the global recession blows over.
    24 Jan 2013, 12:22 PM Reply Like
  • TDWelander
    , contributor
    Comments (624) | Send Message
    No surpise here. With all of the obstructionism going on, new projects not within an existing mine are probably a waste of time for now. While there was some doubt how dumb aquisitions generally are, there certainly should be no doubt now. Buying other peoples hidden problems has never made sense. There appears to be substantial insufficient knowledge transfer from one generation to the next. Take the money and run needs at least the addition of: insure continuity at any reasonable cost to insure future cash flows and minimize future waste. Specifically, this means company Boards should require past CEOs to stay on retainer for at least 5 years, preferably 10 years to advise on and prevent the repeat of past mistakes and errors in judgement; and generally avoid past wasted funds scenarios.
    24 Jan 2013, 12:27 PM Reply Like
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