Stephen Simpson, CFA • 41 Comments
Andres Allende, CFA • 33 Comments
Dec. 27, 2013, 2:36 PM
- Vale (VALE +3.1%) has sold its 31.3% stake in Brazilian logistics firm Logistica Intermodal for $98M through an auction on the Sao Paulo exchange, and its 44.25% stake is phosphoric acid producer Fosbrazil to Israel Chemicals for $52M.
- The asset sales are part of the mining giant's efforts to shed non-core assets, and to focus on its core iron ore, nickel, coal, copper, and fertilizer businesses. Vale has sold $6B worth of non-core assets in 2013.
- Previous: Vale considers selling coal, fertilizer stakes to strategic partners
Nov. 12, 2013, 3:32 AM
- Vale (VALE) has sold a 19.6% holding in Norwegian aluminum-maker Norsk Hydro (NHYDY) for 10.18B Norwegian kroner ($1.66B).
- Vale sold 407.1M shares in Hydro for 25 Norwegian kroners each; if a greenshoe option for 40.7M shares is exercised, Vale will have sold its entire 21.6% interest for 11.18B kroners ($1.82B), or little more than half the $3.53B value of the stake when the Brazilian mining company acquired it in 2011.
- The divestment is part of Vale's strategy of selling non-core assets, putting projects on hold, and focusing on its more profitable iron-ore operations.
- Prior to the deal yesterday, equity analyst Alan Glezer said he viewed the "likely transaction as positive, as it strengthens Vale's balance sheet, helping to alleviate part of the leverage pressure during an intense period of investment." (PR)
Feb. 5, 2013, 5:52 PM
Silver Wheaton’s (SLW) $1.9B purchase of Vale (VALE) gold streams should hike revenues generated from gold production from an average of 12% to a peak of ~25% in the next five years. The move is expected to immediately boost SLW’s production and cash flow profile by adding expected average gold production of 110K oz./year over the next 20 years, or ~$3.7B at prevailing gold prices, Jon Ogg calculates.| Feb. 5, 2013, 5:52 PM | 7 Comments
Feb. 5, 2013, 5:27 PM
Silver Wheaton (SLW) agrees to acquire from Vale (VALE) an amount of gold equal to 25% of the life of mine gold production from its Salobo Mine in Brazil, and 70% of the gold production for a 20-year term from some of its Sudbury Mines in Canada. SLW will pay $1.9B in cash, 10M warrants and ongoing payments of the lesser of $400 or the prevailing market price for each ounce of gold delivered under the agreement.| Feb. 5, 2013, 5:27 PM | 7 Comments
Jan. 24, 2013, 10:34 AM
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.”| Jan. 24, 2013, 10:34 AM | 2 Comments
Sep. 6, 2012, 5:08 AM
Peabody (BTU) scraps the $500M sale of a thermal-coal mine in Queensland after receiving no worthwhile bids, Reuters reports. The move adds to nearly $15B of deals shelved or postponed in Australia this year as commodity prices drop. Other deals set to be pulled include Vale's (VALE) $500M sale of a mine and BG's sale of a $2B stake in an LNG project.| Sep. 6, 2012, 5:08 AM
Feb. 7, 2012, 11:49 AM
Nov. 10, 2011, 4:30 AM
Mitsubishi (MSBHY.PK) pays $5.39B for a 24.5% stake in Anglo American's (AAUKY.PK) Chilean copper unit. The deal is Japan's largest ever mining acquisition and will almost double Mitsubishi's copper output at time when global demand is expected to increase over 40% by 2020. (PR)| Nov. 10, 2011, 4:30 AM
May 31, 2011, 12:57 PM
Apr. 12, 2011, 2:06 PM
Key shareholders of South Africa mining company Metorex say that Vale (VALE) needs to boost its $1.13B cash bid by some 35%, saying there are a small number of copper producers, and that Minmetals Resources offered a higher premium in its $6.3B bid for Equinox Minerals (EQXMF.PK).| Apr. 12, 2011, 2:06 PM