Minmetals looking to identify acquisition targets
The Hong Kong-listed Minmetals Resources recently announced the acquisition of ASX- and TSX-listed Anvil Mining, in what would be the first step in its strategy to buy more assets and jumpstart growth in the coming year, Mining Weekly reported.
According to the news outlet, the company's chief executive noted that Minmetals is scouting for more acquisitions and has identified several targets that would allow it to reach its growth aspirations.
"But these will be disciplined and value-focused acquisitions to grow shareholder value," Andrew Michelmore told shareholders during a meeting.
Minmetals purchased Anvil, which owns the Kinsevere copper mine in the Democratic Republic of Congo, for $1.3 billion and is looking to make similar moves in order to bolster its revenue and mining services sector.
The Australian reported that the mining company, which is based in Melbourne, plans to use each acquisition as a way to launch new business, especially when expanding into markets for new commodities for the firm.
According to the news outlet, the market for acquisitions has cooled since the end of 2011, due to the slight drop in copper prices that brought the value of the metal back to realistic levels. However, the company is still looking to acquire new assets in preparation for a future rise.
"Sure, we don't make as much profit (at lower copper prices) but the price is more sustainable and people's expectations on the values of their businesses are starting to come back to realistic numbers," Michelmore said in a statement.