AFTER spending US$5.3 billion to seal three deals involving overseas mining assets in the past 18 months, China Molybdenum is seeking more acquisition opportunities. However, the Luoyang, Henan province based company says the targets must rank among the bottom half of the production cost curve.
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| China Molybdenum chairman Li Chaochun. |
The strategy of the company, which is the world’s second largest semi processed tungsten ore producer, also involves buying projects hosting minerals that will undergo a tightening of supply demand balance in the long term.
Chairman Li Chaochun said, “Cobalt is a good example ... we will keep monitoring market trends.
“However, we must stick to our internal guideline that the target firm must rank among the bottom half on the production cost curve, which means even if half of global demand disappears, and the metal price fell by half, it will survive. Of course, the asset in question must also have a long mine life.”
China Molybdenum recently completed an 18 billion yuan (US$2.73 billion) private placement, which resulted in a 49.4% stake in the company’s shares split between private equity firm Cathay Fortune and state-owned Luoyang Mining Group. This will lower the company’s liabilities to total assets ratio to 55.7% from 70%, boosting its capacity for potential acquisitions.
China Molybdenum’s management has kept a low profile in recent years, but surprised the market in 2016 by unveiling in rapid succession two acquisitions worth US$4.15 billion. They include the US$1.5 billion acquisition of Anglo American and Ambras’ niobium and phosphates businesses in Brazil, and the US$2.65 billion purchase of a 56% stake in Congo-based copper and cobalt miner Tenke Fungurume Mining. The deals were followed in November by an additional 24% stake in Tenke for US$1.14 billion.
The price of copper has surged 43%, while cobalt, a key ingredient in electric vehicle batteries, has jumped around 140% since the Tenke deals were signed.
Tenke produced 216,000 tonnes of copper in 2016, with 16,000 tonnes of cobalt as a by-product. Its mines have proven reserves to support 25 years of production. This year’s output target is 210,000 to 220,000 tonnes of copper and 16,000 to 18,000 tonnes of cobalt.
Besides Africa and Brazil, Tenke also has copper and gold producing assets in Australia, which it acquired in 2013.
洛阳钼业放眼海外资产
过去的18个月中，在花费了53亿美元锁定3笔涉及海外矿业资产之后，洛阳钼业正在寻求更多的并购机会。但是，这家位于河南省洛阳市的公司表示，并购目标公司的生产成本必须位于行业成本曲线的中下游。
作为全球第二大半成品钨矿石生产企业，该公司的策略还包括收购蕴藏长期看来供应趋紧的矿产品的项目。
公司董事长李朝春表示：“钴是个很好的例子，我们将持续关注市场趋势。”
“但是，我们必须坚持我们的内部原则即并购目标公司的生产成本必须位于行业成本曲线的中下游，这意味着即使全球需求减少一半，金属价格下跌一半，该企业还可以生存。当然，被考虑的资产的矿山寿命也需要长。”
洛阳钼业近期完成了180亿元人民币（27.3亿美元）的股份定增，结果鸿商控股和国有企业洛阳矿业集团共分得了公司49.4%的股份。这将使公司的总资产负债率由70%下降至55.7%，增强公司进行潜在并购的能力。
洛阳钼业的管理层近年来保持低调，但于2016年通过迅速完成两笔合计41.5亿美元的并购震惊市场。这两笔并购包括15亿美元收购英美资源集团位于巴西的铌、磷项目以及斥资26.5亿美元收购位于刚果(金)的Tenke铜钴矿项目56%股权。
自Tenke项目交易结束后，铜价上涨了43%，用于电动汽车电池的关键元素钴的价格大幅上涨了140%。
Tenke项目2016年产铜216,000吨，副产品钴16,000吨。其被证明的储量足以支撑25年的生产。本年度的产量目标是铜210,000至220,000吨，钴16,000至18,000吨。
China Molybdenum