Ex-Glencore, Lundin execs launch firm hunting for copper, gold assets
LONDON - Former Glencore and Lundin executives have set up a private mining shell company to acquire gold, silver and copper assets in the Americas, aiming to tap into an estimated $15-billion in available capital held by specialist private equity firms, co-founder Christopher Kololian said.
Kololian, formerly CFO at Toronto-listed Lundin Gold and an ex-investment banker at RBC Capital Markets, has joined forces with Matthew Rowlinson, who was head of copper business development at diversified miner Glencore, to set up Moranda Metals in Vancouver.
Booming demand for minerals seen as critical for the energy transition has exacerbated the potential for supply shortages after years of underinvestment in the mining sector.
"Here we are sitting with high commodity prices and at the same time, all-time high public market investor apathy towards the mining sector," Kololian told Reuters.
"And then we see there's approximately, if not over, $15-billion of dry powder, so readily available capital today."
The $15-billion in estimated capital includes money held by mining private equity firms and other specialised mining financing companies, he said.
The mining sector has seen a rise in mergers and acquisitions (M&A) activity in recent years, partly driven by strong commodity prices and the need to invest in new projects.
Kololian said Moranda would initially target companies with an enterprise value between $200-million and $500-million.
He said the firm is in discussion with some that could be interested in spinning out undervalued non-core assets, or some whose management teams are looking for new capital to refocus their strategy and potentially rebrand.
"There are no assets sitting there on a silver platter, but we do see a very exciting opportunity set, especially in copper and in gold," he added.
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