Elliott Investment Management is preparing to roll out a new company with an at least $1 billion war chest to invest in metals mining assets around the world, to take advantage of the energy transition and the currently low market valuations of mining companies, the Financial Times reported on Friday, citing sources with knowledge of the plans.
Elliott, the U.S. activist investor, will be looking to invest more than $1 billion in mining operations, especially underfinanced mines, as well as to carry out possible buyouts of public companies or buy stakes in mining groups, according to FT's sources.
Elliott's new company, to be called Hyperion, plans investments in base, precious, and energy transition metals, they noted.
Sandeep Biswas, former CEO at gold miner Newcrest Mining, will lead Hyperion, per FT's sources.
Last year, Newcrest Mining was acquired by Newmont Corporation in a deal that created the world's leading gold company with robust copper production.
Elliott expects to finance most of the planned investment in mining assets but if the opportunity arises for larger deals, it could seek a co-investor, sources close to the U.S. investment management firm told FT.
The firm's foray into metals mining assets comes at a good time for investors looking to buy the dip in mining stocks, which have suffered in recent months from the slump in the prices of key energy transition metals including lithium and nickel.
Moreover, demand for key metals, including copper, is set to surge in the coming years as the world electrifies and electric vehicle sales rise.
Global investments in key energy transition minerals have soared in recent years, and the market has doubled, driven by the rise of EV adoption and a surge in renewable energy capacity installations, the IEA said in its first-ever annual Critical Minerals Market Review last summer.
The lithium price crash over the past year is leading to a slew of profit warnings and project halts from the world's biggest miners of the battery metal. But the long-term prospects of the global EV market continue to be solid, analysts say.
By Tsvetana Paraskova for Oilprice.com
Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. More