Citigroup Suggests Cdn$300b Available for Mining M&A in 2008

Source:

Analysts Craig Sainsbury, John H. Hill, Graham Wark, Heath R. Jansen, and Liam Fitzpatrick said the current wave of mining M&A will continue, driven by: "free cash flow yield premia, mounting cash balances, dwindling reinvestment opportunities, frictional barriers to new mine capacity, and aggressive forays by sovereign investors."

Citigroup metals and mining analysts recently suggested that a potential cash pool of more than Cdn $300 billion is available for mining M&As this year...

Analysts Craig Sainsbury, John H. Hill, Graham Wark, Heath R. Jansen, and Liam Fitzpatrick said the current wave of mining M&A will continue, driven by: "free cash flow yield premia, mounting cash balances, dwindling reinvestment opportunities, frictional barriers to new mine capacity, and aggressive forays by sovereign investors."

The analysts forecast that, by 2010, "the sector as a whole will be in a net cash position."

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