trending Market Intelligence /marketintelligence/en/news-insights/trending/dg_UIIgWJFwT1FGQRocvxg2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

Thank you for your interest in S&P Global Market Intelligence! We noticed you've identified yourself as a student. Through existing partnerships with academic institutions around the globe, it's likely you already have access to our resources. Please contact your professors, library, or administrative staff to receive your student login.

At this time we are unable to offer free trials or product demonstrations directly to students. If you discover that our solutions are not available to you, we encourage you to advocate at your university for a best-in-class learning experience that will help you long after you've completed your degree. We apologize for any inconvenience this may cause.

In This List

Private equity eyeing downturn for bigger slice of mining M&A

Essential Metals & Mining Insights - August 2020

State of the Market: Mining Q2-2020

Report Outlooks of Lithium and Cobalt

Essential Metals & Mining Insights July 2020

Private equity eyeing downturn for bigger slice of mining M&A

Thecurrent downturn is expected to allow different players, and particularlyprivate equity funds, to come into the mining sector, Dean Braunsteiner, apartner at accounting firm PricewaterhouseCoopers, said during a paneldiscussion at the Mines and Money Asia 2016 in Hong Kong on April 7.

"Therewere plenty of deals happening in the private market but you just didn't hearabout them," he said. "I think the next step for private equity fundsis to move to the public market where the big opportunities are."

Privateequity is expected to help fill in the gap left bythe public market,according to Braunsteiner.

"[Privateequity] found it hard to compete with big mining companies'cheap financing resources. That's starting to change now," he said, notingthat mounting debts at large mining companies have pushed them to tryalternative financing methods.

"Theyare starting to get a little bit desperate now," he added.

JasonChang, CEO of EMR Capital, noted that opportunities for private equity funds topartner with mining companies are emerging.

Whilecommenting on private equity's risk appetite, Chang said that the marketsentiment among private investors is shifting towards later stage projects dueto the low price environment.

"Weinvest across the mining curve but the only exception is that we don't do greenfield exploration. We don't fund the first drill hole," Chang said.

BertKoth, managing director of Denham Capital, agreed and noted that "almost90% of mining M&A targets are producing assets."

Braunsteinersaid that it would take another two to five years before mining majors start toprogress their early stage projects with substantial investments.

"Thebig companies are doing early stage work, targeting where they want to be, butthey probably won't be putting a lot of money into these projects for anothertwo to five years," he said.

Braunsteineradded the downturn would be a good time for private investors if they werewilling to take the risk.