Wednesday, October 23, 2013

Copper M&A: Minmetals To Bid For Glencore Xstrata’s Las Bambas Copper Project Valued At About $5 billion LCC.v, MUX, TNR.v


  We have another confirmation in the report from Bloomberg on ongoing bidding and valuations of Las Bambas copper project in Peru. All this information must be confirmed by the official companies' releases, but we can get the big picture already. China is implementing its long term state level plan to secure strategic resources and diversify from US Dollar denominated assets.
  Lumina Copper is trading above CAD6.00 again and the company talks about 9 companies visited the property during the DD stage. Company has risen from August low more than 60% on prospect of the potential sale this year to the Copper producer, according to the company presentation.
  Investors of Lumina Copper, McEwen Mining and TNR Gold are watching closely the midterm elections due this weekend in Argentina. There is a hope that recent improved valuation of Lumina Copper is signalling the return of more pragmatic approach to the mining sector in Argentina. 


Mining And Argentina: 'Queen Cristina' facing the end of her reign LCC.v, MUX, TNR.v, ILC.v, RM.v

"Lumina Copper looks much more optimistic these days. Argentina was the place to go for mining 5 short years ago and the last two years it was crashed into the ground with the mining stocks operating there. Now we see a glimpse of hope and few deals are showing that the better future is to come for the proud people and the great country.
  Companies to watch: McEwen Mining, TNR Gold, Lumina Copper, International Lithium, Rodinia Lithium."

TNR Gold says updated McEwen PEA on Los Azules shows enhanced economics TNR.v, MUX

McEwen Mining & TNR Gold: Chinese giants poised to go head to head in battle for $5.9bn Las Bambas mine MUX, TNR.v

"We have more news coming out of London on the Las Bambas copper mine bidding war. More reports are coming out now with the positive outlook for copper as well, but the most important in any market is the money talk and now the real money has been put on the table. Only one buyer will be successful in this bidding war and it will bring industry attention to Los Azules copper project with the valuation catalyst for McEwen Mining and TNR Gold. Lumina Copper recent advance with its Taca Taca copper project also located in Argentina is the very good sign of things to come here."

Los Azules Copper, McEwen Mining and TNR Gold: Lumina Copper Surged 63% From August Low MUX, TNR.v, LCC.v, GDX

 "Lumina Copper has become one of our main success stories this summer which we have shared with our fellow travelers. As you know, we are not giving any investment advice here and our observations of the markets and trends will stay only observations until Mr Market will make up his mind. Please read our full legal disclaimer.
  With Lumina Copper we have noticed the catalyst when Ross Beaty has increased his 22% in the company and bought 1 million worth of shares this summer. For us it is our "Dream Team" with Tenke Mining all over again: one of the best mining leaders at the helm with his personal wealth at stake, goods are there - safely in the ground - and the valuation is extremely distorted by the political risk perception.
  The dive in commodity prices did not help the valuation in the first half of the year either. The fear of dramatic slowdown in China was hanging over the market. Then we have news start to flow from Clencore:"

McEwen Mining & TNR Gold: CIBC Reiterates “Outperform” Rating for Lumina Copper MUX, TNR.v, LCC.v

 "Rob McEwen is taking Taca Taca Copper deposit as the proxy for valuation of Los Azules Copper deposit. After recently released by McEwen Mining updated PEA on Los Azules we found it interesting that CIBC has reaffirmed its stock rating for Lumina Copper with CAD15.00 target price. Lumina Copper is trading now at CAD5.00 and this target price will put the valuation of Taca Taca Copper deposit at $650 million. Now you can slice it and dice it with the Mr Market mood.
  Any analyst valuation will be the the pie in the sky until Mr Market will confirm it, that is why for us is very important when Insiders are voting with their own money on the valuations. Ross Beaty bought 1 million worth of stock in Lumina Copper this summer.
  We are expecting now that analysts will start to put valuations in their research notes on Los Azules Copper after the updated PEA."

Rob McEwen - Argentina may lift mining currency restrictions MUX, TNR.v


Minmetals Said Likely to Drop Out of Rio’s Canada Bidding

China Minmetals Corp., the nation’s biggest state-owned metals trader, is likely to drop out of the bidding for Rio Tinto Group (RIO)’s controlling stake in Iron Ore Co. of Canada, according to two people with knowledge of the matter.
Minmetals considers Rio’s asking price too high and has decided to focus more on its bid for aGlencore Xstrata Plc (GLEN) copper project in Peru, one of the people said, asking not to be identified because the information is private. Rio’s 59 percent stake in Iron Ore Co. may be valued at as much as $3.5 billion, Credit Suisse Group AG analysts said in June.
Global mining companies including Rio, BHP Billiton Ltd. (BHP) and Anglo American Plc (AAL)are seeking to sell some of their less-promising assets after a worldwide economic slowdown reduced consumption of raw materials. Steel-demand growth from China will slow in the next two years, according to Deutsche Bank AG.
Rio began a sale of its Iron Ore Co. stake this year to cut costs and strengthen its balance sheet, hiring Credit Suisse and Canadian Imperial Bank of Commerce to sell all or part of its interest, a person close to the matter said in March.
He Jinglin, a media-relations official at Beijing-based Minmetals, said he had no information regarding the sale. Illtud Harri, a spokesman for London-based Rio, declined to comment.
Teck Resources Ltd. (TCK/B), Canada’s second-largest mining company, is also considering abandoning its bid for the Rio unit because of a wide valuation gap, two people familiar with the matter said earlier this month.

Failed Sales

Rio has struggled to sell other units. In June, the company said it backed away from divesting its diamond division after failing to find a buyer and deciding not to pursue an initial public offering of the unit. In August, Chief Executive Officer Sam Walsh said a sale of Australian and New Zealand aluminum units “for value is not possible in the current environment.”
Minmetals is leading a group to bid for Glencore Xstrata’s Las Bambas mining project, which would be valued at about $5 billion, two people familiar with the matter said this month.
The metals trader plans to contribute about half the funding for the offer, while a unit of Chinese state-backed conglomerate Citic Group Co. would put in about 30 percent, the people said. China Reform Holding Corp., an investment company backed by China’s state assets regulator, may contribute the remaining 20 percent of the financing, they said.
To contact the reporters on this story: Zijing Wu in Hong Kong at; Matthew Campbell in London at
To contact the editor responsible for this story: Philip Lagerkranser"
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