junior miners: the debt sentence?
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Junior Miners: The Debt Sentence?. Dr Tim Williams Director Global Mining & Metals, Transaction Advisory Services, Ernst & Young LLP +44 (0)20 7951 2922 [email protected]. Ernst & Young in the mining industry. A global leader in assurance, tax, transaction and advisory services - PowerPoint PPT PresentationTRANSCRIPT
Dr Tim WilliamsDirector
Global Mining & Metals, Transaction Advisory Services,
Ernst & Young LLP+44 (0)20 7951 [email protected]
Junior Miners:The Debt Sentence?
Ernst & Young in the mining industry
27-28 October 20102 FINEX ‘10
► A global leader in assurance, tax, transaction and advisory services
► Globally we work for 25 of the top 30 mining and metals companies
► We lead the way in emerging markets, and have advised on key flotations in the
sector, including: Xstrata plc; Hochschild Mining Ltd; Kazakhmys plc; Gem
Diamonds Ltd; Ferrexpo Ltd; Fresnillo plc; Ruuki Group plc; and on Rio Tinto/BHP
and Xstrata/Anglo American proposals
► We have advised on many transactions in the sector, including two of the largest
deals in recent years: Falconbridge by Xstrata; and Inco by Vale
► We are recognised as leading advisors in key financial centres:
► We lead the UK mining new listings; 9 of the last 12
► We work for all of the FTSE 100 mining and metals companies
Don’t be short-termist
27-28 October 20103 FINEX ‘10
Copper, what recessions?
27-28th October 2010 FINEX ‘104
Aluminium, the young metal: solid electricity
27-28 October 20105 FINEX10
Aluminium stock shock
27-28 October 20106 FINEX10
Source: LME, Thompson Datastream
Mining surviving
27-28 October 20107 FINEX10
YoY movement in net debt – 1980 to 2009
Source: Ernst & Young, Worldscope via Thomson Datastream. Forecasts are Reuters consensus estimates, via Reuters Knowledge
Recessions
Forecast
Mining eye looking good
27-28 October 20109 FINEX10
Miners have been leading AIM in 2010…
27-28 October 201010 FINEX ‘10
Mining returning to importance on AIM
27-28 October 201011 FINEX10
Ins and outs of the AIM miners
27-28 October 201012 FINEX10
AIM mining funds raised; and all AIM funding
27-28 October 201013 FINEX10
Gold remains the target
27-28 October 201014 FINEX ‘10
Source: Ernst & Young
New mining listings on AIM this year
► Scotgold gold Scotland £0.7m
► Bellzone iron ore Guinea £34m
► Kibo gold Tanzania £0m
► Metminco Cu, Au, Mo, Zn Peru, Chile £9.3m
► Ncondezi Coal coal Mozambique £36m
► Central Asia Metals Cu, Au, Mo Kazakhstan,“ Mongolia £38m
27-28 October 201015 FINEX10
Source: press reports
AIM mining consolidators: “M”
► Rusina Mining and European Nickel
► Western Coal and Energybuild
► Braemore Resources and Jubilee Platinum
► Hidefield Gold and Minera IRL
► Ridge Mining and Aquarius Platinum
► Cambrian Mining and Western Coal Corp
► Mano River Resources and African Aura
27-28 October 201016 FINEX10
Source: press reports
AIM miners as targets, last 18 months: “A”
27-28 October 201017 FINEX10
► Afnat Resources by Axmin
► Kiwara by First Quantum
► Mowdow Mines by Franco Nevada
► CAMEC by ENRC
► Moto Goldmines by Randgold Resources
► Glencar Mining by Gold Fields
► Minerva Resources by Dwyka Resources
► Cambrian Mining by Western Coal
► Oriel Resources = MechelSource: press reports
Let’s be partners…
► Jubilee Platinum and Sylvania Resources – PGMs joint venture
► Mariana Resources and Cliffs Natural Resources – exploration partnership
► Allied Gold – IFC► Nyota Minerals – IFC► Petra Diamonds IFC► Herencia Resources – Nyrstar► Serabi Mining – Eldorado Gold► Goldstone Resources – Bendigo Resources► Triple Plate Junction – Newcrest Mining: joint venture► Karelian Diamonds – Rio Tinto: exploration partnership► European Nickel – Hunter Dickinson
27-28 October 201018 FINEX10
Source: press reports
China!
► African Minerals’ Tonkolili iron ore in Sierra Leone – China Railway Materials Commercial Corp
► African Minerals – Shandong Iron & Steel► Oxus Gold’s Amantaytau Goldfields in Uzbekistan – Chinese
financiers► European Nickel’s Caldag nickel project – Jiangxi Rare Earths and
Rare Metals Tungsten Group► Toledo Mining’s nickel in Philippines – Jinchuan Group► Chromex Mining’s lumpy chrome (offtake) – Suzhou Kaiyuan
Chemical► Bellzone Mining’s Kalia iron ore in Guinea - China International Fund► Kryso Resources’ Pakrut gold in Tajikistan – China Nonferrous Metals► Sirius Minerals - potash - Sino-Agri Mining
27-28 October 201019 FINEX10
Source: press reports
Bubble bath? Double bubble trouble?
27-28 October 201020 FINEX ‘10
Our views and opinionswww.ey.com/miningandmetals
www.ey.com/miningandmetals
Michael D Lynch-BellEMEIA Leader Mining & Metals
Ernst & Young LLP+44 (0)20 7951 3064
Thank you
27-28 October 2010 FINEX ‘1023
Disclaimer
This publication contains information in summary form and is therefore intended for general guidance only. It is not intended to be a substitute for detailed research, or the exercise of professional judgement. Neither EYGM Limited nor any other member of the global Ernst & Young organization can accept any responsibility for loss occasioned to any person acting or refraining from action as a result of any material in this publication. On any specific matter, reference should be made to the appropriate advisor.