Cleveland-Cliffs and Alpha Natural Resources to merge, creating Cliffs Natural Resources, a leading diversified mining and natural resources company
Now, finally, Cliffs is out spending its seed corn. The question is, will it get returns from it? What has protected Cliffs in the past from takeover is its horribly structured off-take contracts. Why would Mittal, for [...]
Entries Tagged as ‘Anglo’
July 16, 2008
Cliffs continues to surprise
June 30, 2008
The sharks are swimming
Telegraph.co.uk: Anglo American to pore over BHP and Rio’s iron ore assets
What makes Anglo or Xstrata think they can outbid the Chinese for decent iron ore assets? If this merger happens on the condition that Rio Tinto is broken up to a degree, we will see what the value of a set of grade A [...]
June 10, 2008
No credit crunch if you are Anglo
RLPC-Anglo American to increase $3.5 billion loan
In the face of completely irrational pricing of most debt, banks are still bending over backwards to lend mining companies money. Not all risk is apparently created equal, and not all ratings mean the same thing anymore. What a shock. I think BHP could get $50-80 billion in leverage [...]
June 5, 2008
Xstrata, just buy Anglo
Guardian.co.uk: Xstrata looks at Congo, aluminum, iron ore
If you are not fish food, you are a shark. The question of consolidation in the mining industry is coming to a head. It could be that before too long we are going to end up with the survivors of the industry, and that will include an independent [...]
May 5, 2008
Benjamin S., just call BHP or Anglo
CSN wants to sell its last iron ore mine. This would not be the first time that Benjamin S. has sold iron ore; the last time was when he sold CVRD, and you can see how well that worked out for him. The question is what is CSN trying to sell and how is it [...]
August 4, 2007
Coal: everyone wants it
Anglo Coal is a very boring business, but it would fit so well for 3/4 the companies who would be interested in Anglo. Anglo Coal is tied into South Africa firmly, since 37% of the coal business is from mine mouth coal mines directly servicing power plants owned by Eskom. These are great little operations [...]
July 30, 2007
If Canada can jointly market potash, why can’t SA jointly market PGM?
Anglo has 194 million ounces of proven and probable PGM resources in the ground. At $1320 per ounce for platimum, this asset has in situ value of at least $200b USD. They have another 500 million ounces-plus of inferred resources. So on an in situ asset base of almost $1 trillion, they are making $2.5b [...]
July 27, 2007
Kumba, strategically stranded
So many people do really detailed models on the trees and simply miss the forest. I am going to do a 3-4 hour job on Kumba.
Anglo has stranded Kumba, because it only owns 65% of it and not all of it. When Anglo did the deal with MMX in Brazil it was done directly, without [...]
