schroeders

Quote of the Week: PE Mining for Deals

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May 23, 2013

“I haven’t seen anything like  it in more than 20 years…Mining companies have done pretty well buying assets at the bottom of the cycle and turning some over near the top, but this is completely the other way around.”

 

Who said it:  Tim Schroeders of Pengana Capital in Melbourne in a Bloomberg interview

 

In Context: Mining asset disposal could be a big target for PE funds as a bear market encourages sell offs, according to Schroeders who was quoted in a recent Bloomberg feature story. Mining companies are holding “the biggest ever sale of assets this year”. About USD 48 billion of mines and assets are on offer,  almost double last year’s USD 23 billion of completed and pending deals, according to data compiled by Bloomberg. Private equity firms have raised almost USD 9 billion in the past 16 months for mine investment, according to data compiled by Bloomberg, which means that PE funds could be financing quite a few mining projects in the coming years. (Image Source: Rio Tinto)

 

Where we found it:  Bloomberg

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