Arc Minerals Share Discussion Threads

[apotheki] 25/4/2024 11:25

Anglo American (AAL LN) 2,481.5p, Mkt Cap £29.5bn – £31.1bn (~US$39bn) conditional, all-share offer, from BHP

BHP (BHP LN) 2,296p, £120bn

Anglo American confirms that it has been approached by BHP concerning a possible combination of the two companies through an all share offer by BHP to acquire Anglo American.

The proposal from BHP envisages demergers of Anglo American’s “entire shareholdings in Anglo American Platinum Limited and Kumba Iron Ore Limited to Anglo American shareholders” prior to its offer for the rest of Anglo American.

Describing the proposal as “unsolicited, non-binding and highly conditional” Anglo American says that it is considering the proposal with its advisors and recommends its shareholders to “take no action” at this stage.

In a separate announcement, BHP confirms its proposal to offer 0.7097 of its shares for every share in Anglo American representing a “total value of approximately £25.08 per Anglo American ordinary share including £4.86 in Anglo Platinum shares and £3.40 in Kumba shares, valuing Anglo American's share capital at £31.1 billion”.

BHP’s statement expresses the view that combining with Anglo American “would bring together the strengths of BHP and Anglo American in an optimal structure … [with] … a leading portfolio of large, low-cost, long-life Tier 1 assets focused on iron ore and metallurgical coal and future facing commodities, including potash and copper … [while delivering] … meaningful synergies, including from sharing best practice, creating procurement, operational and marketing synergies and eliminating duplication, which would enhance profitability and value for Anglo American shareholders”.

BHP says that “Anglo American's other high quality operations including its diamond business would be subject to a strategic review post completion”.

BHP also warns that their announcement today “does not amount to a firm intention to make an offer and there can be no certainty that an offer will be made. There is no certainty that any form of agreement or transaction will be reached or concluded”.

In our opinion, the initial approach by BHP could be the start of a protracted process which may possibly draw in other suitors for Anglo American and which could see Anglo American either lose its independence or reinvigorate it as a stand-alone force in the industry.

Although they may reach an amicable agreement quickly, if BHP and Anglo American are drawn into lengthy hostilities management resources in both the target and predator, and possibly among other potential offerors, could come under pressure to the detriment of the operational needs of the respective businesses.

Although consolidation of two major forces in the mining industry has scope to generate cost savings through the generation of synergies, it also consolidates control of key commodities which may attract the scrutiny of regulators and spark concerns on competition grounds.

We also comment that consolidation of industry control may not necessarily increase either the overall output of key commodities or encourage exploration to replenish depleting mineral resource inventories.

Readers with a long memory or an historical interest will hear echoes of the late 1980’s when the Anglo American’s subsidiary, Minorco, launched an ultimately unsuccessful hostile year-long battle – said to have been the largest hostile offer ever launched on the LSE up to that time, for Consolidated Gold Fields which ultimately saw the world’s second largest gold producer acquired and dismembered by Hanson plc.

Conclusion: Initial approaches by BHP to acquire Anglo American may be the start of a long process which may draw others into the fray. A speedy resolution is desirable for operational reasons but may not be achievable if regulators and competition authorities are drawn into the process.

[apotheki] 25/4/2024 11:23

SP Angel . Morning View . China likely to trump BHP offer for Anglo American

M&A – BHP / Anglo American – China likely to trump BHP bid to buy Anglo

BHP’s offer for Anglo is highly conditional and looks like it won’t happen if the board at Anglo don’t want it and we suspect that means decent jobs for the Anglo boys in Melbourne

While the offer looks highly speculative management distraction will degrade Anglo from the inside with any deal likely to be bogged with anti-competition and other regulators

We reckon the best option for Anglo shareholders from here is for a better quality takeover offer possibly from a Chinese or Indian entity, remember Vedanta appeared to be interested a few years back.

Glencore also holds obvious synergies with Anglo’s assets, alongside their appreciation for high-quality met coal. However their balance sheet may be restricted by their recent acquisition of EVR.

More M&A in the sector looks assured as the majors compete to control limited number of large-scale mineral assets

BHP don’t really want the South African mines hence the conditionality on the Anglo Platinum and Kumba Iron

A combination of the two companies will no-doubt realise the usual balance sheet benefits but its unlikely to lead to the production of any more copper etc…

The die is cast for China to come in and trump BHP’s offer with relatively little resistance from the South African authorities.

[bigalan3] 25/4/2024 07:44

Look like BHP might take over AA.

[rainyrain] 25/4/2024 06:39

Generally the rains in Zambia stop beginning of April. Should now be in the cool dry season.

Why aren't Anglo drilling yet? Will they drill this season, will they ever? Personally, and entirely my humble opinion, something smells off here!

Especially since last year the CEO said they were drilling 24 hours a day, and we've heard nothing about how that went!

All imho DYOR!

[sharestar5] 23/4/2024 13:35

Interesting agreement for Kansanshi oxide ore with Midnight Sun. Will Sentinel have something similar?

[fatboy1nc] 22/4/2024 19:56

Hopeful for both Divmad.

[divmad] 22/4/2024 08:19

Arc, or AA?

[fatboy1nc] 21/4/2024 21:50

Puzzle pieces are now slowly falling into place, hopefully Arc will reveal that master treasure map very soon!GLA.FB

[texaschaser] 21/4/2024 15:03

'Most who look into it end up taking a position here it seems.'

They assumed the position alright. Squeak. Lolzzzzzzzz

[the skipper] 19/4/2024 10:08

I was of course referring to gfg’s post, not yours Ortus!

[the skipper] 19/4/2024 10:06

That is the biggest porky I’ve ever seen on here and fortunately the drilling rigs run on diesel, so will be unaffected by power cuts.

Your presence is always a good contrarian indicator so watch this move north next week.

[ortus] 19/4/2024 10:06

Maybe research the company and you'll see that you don't need to be concerned about finances but you should become excited about it's prospects. Most who look into it end up taking a position here it seems.

[paulscb] 17/4/2024 12:48

Zambia is finished for the foreseeable future.

Pin your hopes on Botswana.

Power shortage, water shortage, mines shutting down production, drought called as a national emergency.



Zambia said on Tuesday it needs more than $900 million to deal with the worst drought the country has ever recorded and provide "life-saving" assistance to millions of people.

China Nonferrous Metal Mining Corporation's (CNMC) Chambishi copper smelter in Zambia reduced its production due to power shortages in the country. This follows President Hichilema declaring on February 29 2024 that the ongoing drought constitutes a national disaster and emergency, raising the prospect of electricity rationing, given Zambia's heavy reliance on hydroelectric power generation. Moreover, due to projected poor rainfall and El Niño effects.

[apotheki] 16/4/2024 10:23

HZM = tons and tons of debt

ARCM = zero debt

goforgold1 = do some basic f7ck*n research

[goforgold1] 16/4/2024 08:02

This will end upLike HZM

[stockhunters] 15/4/2024 14:54

right sector right place

[texaschaser] 13/4/2024 07:53

Nahh. Cross ramping. Happy as Larry me. Where's 'weedman' and his Charty pants ramper?

[apotheki] 12/4/2024 08:55

BBs are supposed to be for sharing info as well as views. I was clearly sharing info!

[apotheki] 12/4/2024 08:53

Unlike you [TROLL] I am not angry or even a little bit cross!



"and near ARC Minerals licence PL135/2017 (Virgo Copper-Silver Project)"



Hence the FYI

[overdale123] 12/4/2024 08:53

Rampers or the opposite on this free BB have no influence whatsoever. As with most small caps, totally dependent on news, good or bad.

[texaschaser] 12/4/2024 08:47

Cross ramping never works.

[apotheki] 12/4/2024 08:33

FYI

SP Angel . Morning View

The Sesana project is located on the eastern edge of the Kalahari Copper Belt approximately 25km from “the producing Khoemacau underground copper-silver mine” and “next to Galileo Resources licence PL039/2018 and near ARC Minerals licence PL135/2017 (Virgo Copper-Silver Project), where a 3km long soil anomaly associated to the D'Kar / Ngwako Pan formations contact has been recently identified”.

Existing deposits in the Kalahari Copper Belt are usually found at the geological contact between the D’Kar Formation and the underlying Ngwako Pan Formation and today’s announcement describes a “regional airborne magnetic data … [which] … shows … a ca. 10km long stretch of the contact between the D'Kar and Ngwako Pan formations contact is passing through the northern part of the Tenement, along the eastern margin of a fold structure, which makes it a perfect setting for copper-silver mineralisation”;.

“Initial exploration work will include a combination of geochemical and geophysical exploration methods … [including] … Soil sampling associated to ionic leach assays is particularly suitable for the KCB context … [and a] … Detailed magnetometer survey will allow a detailed mapping of lithology and structures while induced polarization will allow the direct localisation of disseminated sulphides to allow accurate reconnaissance drilling planning”.

CEO, Cedric Simonet, explained that the “acquisition of the Sesana Project is in line with the implementation of Altona's portfolio diversification strategy”.

Conclusion: Altona Mining is joining the increasing exploration interest in Botswana’s Kalahari Copper Belt. We await news as exploration of the Sesana project proceeds.