Copper M&A: Glencore Xstrata Close to Sale of Its Las Bambas Peruvian Copper Project MUX TNR.v LCC.v

  

  According to the report China is closing the next mega deal in the resource sector in order to secure the supply of strategic commodities. This time it is copper. Another Chinese company - China National Gold is reported to be in talks with Ivanhoe on DRC Copper mine. We guess that the end of the world will be postponed again and China is using any opportunity to buy the real assets at the cheapest price possible. China is executing the state-level plan to diversify its reserves out of US Dollar and is buying assets in Gold, Copper and Lithium. We have mentioned before the rumours about Barrick Gold being in talks over its huge Pascua Lama with CITIC from China and are monitoring the sector for the conformation.

Rumour Mill: "CITIC Buying Into Pascua Lama" - Can Argentina Mining Really Make Its Come Back? TNR.v MUX ABX LCC.v

 "Is this rumour too good to be true for the proud people of Argentina? Can Argentina ever make its come back in mining? On the one hand we have still the very strong perception of the high political risk and on another hand we have reports from the ground about the changing environment in the country:

"Situation in Argentina is changing for the better with recent developments on Repsol compensation. Goldcorp was talking about "Argentina issues easing" and Pan American Silver CEO has recently sated:

"Meanwhile, when asked by an analyst to comment on the future of the Navidad project, PanAm CEO Geoff Burns said he sees signs of noted improvement “in our operating environment and in the attractiveness of making investments” in Argentina.

“There was a new chief of cabinet installed…now a couple of months ago,” he observed. “And he certainly seems to be driving a more business-friendly environment, or at least, pushing for a more business-friendly environment.”

“I was down there [in Argentina] just a couple of weeks ago, and I would say I am more optimistic than I have been in the last couple of years about the future of Argentina and the future of mining investment in Argentina,” Burns advised."

  Rob has mentioned as well that Argentina is changing for the better now: "Profits are coming out of the country now and political change will happen within next one and a half years. We have very large Los Azules Copper project in Argentina. Last year large projects went out of favour, we are sitting on it now. Copper prices are above 3 dollars now and we had the new PEA last Fall. It is our source of liquidity in the future."

The reports provided on the links below are suggesting that this particular move by Barrick Gold could not be so far fetched: company has confirmed that it is working on strategic partnerships on Pascua Lama and that partners from China are of a particular interest for the company. Argentinean government has even organised negotiations with Chile in order to bring Pascua Lama project back to life. We will not rush ahead to the conclusions and will wait for the official confirmations about these talks, but the trend is quite apparent for the industry insiders and we had discussed it before. 

  After the bidding war for Las Bambas Copper in Peru there are not so many world class copper assets left. M&A activity in Copper sector is heating up with ongoing deals on Glencore's Las Bambas, Hudbay's acquisition and OZ Minerals talks with potential partners. Now the projects like Los Azules copper will get more industry attention. We are following McEwen Mining and TNR Gold involved in this project, please read carefully all our disclaimers and do your own DD, as usual.

 "TNR Gold is still the sleeping beauty: company holds shares in McEwen Mining after the settlement on Los Azules and Back-In right into Los Azules Copper project in Argentina. Among other assets TNR Gold holds 100% of Shotgun Gold project in Alaska with first resources announced last year and strategic stake in International Lithium."

TNR Gold Insiders report: CEO And CFO Buying Shares.  

  Among other beneficiaries of improved investment climate in Argentina we should name Lumina Copper with its Taca Taca copper deposit and International Lithium developing Mariana Lithium brine project with its strategic partner Ganfeng Lithium. 

  We will closely monitor the situation with these developments around Pascua Lama and you can find additional information for your research on the links below. 

More."

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

Bloomberg:

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 zwu17@bloomberg.net; Matthew Campbell in London at mcampbell39@bloomberg.net

To contact the editor responsible for this story: Philip Lagerkranser atlagerkranser@bloomberg.net"

Please Note our Legal Disclaimer on the Blog, including, but Not limited to:

There are NO Qualified Persons among the authors of this blog as it is defined by NI 43-101, we were NOT able to verify and check any provided information in the articles, news releases or on the links embedded on this blog; you must NOT rely in any sense on any of this information in order to make any resource or value calculation, or attribute any particular value or Price Target to any discussed securities.

We Do Not own any content in the third parties' articles, news releases, videos or on the links embedded on this blog; any opinions - including, but not limited to the resource estimations, valuations, target prices and particular recommendations on any securities expressed there - are subject to the disclosure provided by those third parties and are NOT verified, approved or endorsed by the authors of this blog in any way.

Please, do not forget, that we own stocks we are writing about and have position in these companies. We are not providing any investment advice on this blog and there is no solicitation to buy or sell any particular company.