• 6 hours Thanksgiving Gas Prices At 3-Year High
  • 10 hours Iraq’s Giant Majnoon Oilfield Attracts Attention Of Supermajors
  • 12 hours South Iraq Oil Exports Close To Record High To Offset Kirkuk Drop
  • 15 hours Iraqi Forces Find Mass Graves In Oil Wells Near Kirkuk
  • 16 hours Chevron Joint Venture Signs $1.7B Oil, Gas Deal In Nigeria
  • 17 hours Iraq Steps In To Offset Falling Venezuela Oil Production
  • 19 hours ConocoPhillips Sets Price Ceiling For New Projects
  • 3 days Shell Oil Trading Head Steps Down After 29 Years
  • 3 days Higher Oil Prices Reduce North American Oil Bankruptcies
  • 4 days Statoil To Boost Exploration Drilling Offshore Norway In 2018
  • 4 days $1.6 Billion Canadian-US Hydropower Project Approved
  • 4 days Venezuela Officially In Default
  • 4 days Iran Prepares To Export LNG To Boost Trade Relations
  • 4 days Keystone Pipeline Leaks 5,000 Barrels Into Farmland
  • 4 days Saudi Oil Minister: Markets Will Not Rebalance By March
  • 4 days Obscure Dutch Firm Wins Venezuelan Oil Block As Debt Tensions Mount
  • 4 days Rosneft Announces Completion Of World’s Longest Well
  • 5 days Ecuador Won’t Ask Exemption From OPEC Oil Production Cuts
  • 5 days Norway’s $1 Trillion Wealth Fund Proposes To Ditch Oil Stocks
  • 5 days Ecuador Seeks To Clear Schlumberger Debt By End-November
  • 5 days Santos Admits It Rejected $7.2B Takeover Bid
  • 5 days U.S. Senate Panel Votes To Open Alaskan Refuge To Drilling
  • 5 days Africa’s Richest Woman Fired From Sonangol
  • 5 days Oil And Gas M&A Deal Appetite Highest Since 2013
  • 6 days Russian Hackers Target British Energy Industry
  • 6 days Venezuela Signs $3.15B Debt Restructuring Deal With Russia
  • 6 days DOJ: Protestors Interfering With Pipeline Construction Will Be Prosecuted
  • 6 days Lower Oil Prices Benefit European Refiners
  • 6 days World’s Biggest Private Equity Firm Raises $1 Billion To Invest In Oil
  • 7 days Oil Prices Tank After API Reports Strong Build In Crude Inventories
  • 7 days Iraq Oil Revenue Not Enough For Sustainable Development
  • 7 days Sudan In Talks With Foreign Oil Firms To Boost Crude Production
  • 7 days Shell: Four Oil Platforms Shut In Gulf Of Mexico After Fire
  • 7 days OPEC To Recruit New Members To Fight Market Imbalance
  • 7 days Green Groups Want Norway’s Arctic Oil Drilling Licenses Canceled
  • 7 days Venezuelan Oil Output Drops To Lowest In 28 Years
  • 7 days Shale Production Rises By 80,000 BPD In Latest EIA Forecasts
  • 7 days GE Considers Selling Baker Hughes Assets
  • 8 days Eni To Address Barents Sea Regulatory Breaches By Dec 11
  • 8 days Saudi Aramco To Invest $300 Billion In Upstream Projects

Breaking News:

Thanksgiving Gas Prices At 3-Year High

A High-Profile Miner's Unusual Strategy

A High-Profile Miner's Unusual Strategy

There's been a lot of talk lately about purchasing mining assets.

With many metals at multi-year lows, big investors have started circling. Looking at "picking off" quality projects at the bottom of the cycle. In some cases, buyers have raised billions in specialty funds dedicated to searching for mines and advanced development plays globally.

But one big player said last week that's largely been a waste of time.

That sentiment was expressed by management from Australian zinc producer MMG last week. With the firm's CEO Andrew Michelmore telling Platts that MMG's search for good assets globally has largely come up empty.

Michelmore noted that the majority of available development projects come with significant issues. Most notably low grades and high capital costs.

He said that MMG has "less than a handful" of projects they consider meaningful worldwide. Adding that almost all of those are--understandably--being developed by other groups, who aren't willing to part with them.

Faced with this dearth, Michelmore said MMG is taking another tack. Looking to exploration. Which he called a "clean sheet of paper" approach to finding deposits to feed the company's development pipeline.

The move to exploration certainly makes sense from an ease-of-work perspective. The market for advanced projects has become incredibly crowded the last few years. But few investors have been looking at earlier-stage opportunities--meaning this segment of the project spectrum is wide open.

Other big mining companies are having similar thoughts. I've had conversations with managers recently noting that with markets being soft, mega-M&A deals on large deposits are off the table. With more-affordable greenfields work being seen as a better alternative for adding new mineral reserves and resources.

The other advantage of course is that developers can tailor an exploration portfolio to their needs. Only want projects close to infrastructure? Only in a particular jurisdiction? An exploration program can easily be geared to those criteria. While the chances of finding advanced-stage assets that happen to fit the bill are next to zero.

We're going to be seeing more such work happening in many of the metals. It might be time to start investing the way the big miners are.

Here's to making your own destiny,

By Dave Forest




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News