Insight
| |
7 Pages

Iron Ore M&A: evaluating the opportunities


Iron Ore M&A: evaluating the opportunities

Report summary

We have identified seven iron ore assets supplying the seaborne market that could potentially be up for sale in 2016 - Vale's Midwestern System, Anglo American's Minas Rio and Kumba operations, Atlas Iron, Ferrous Resources, Arrium and Karara - and compared their cash margins, production and reserves. By looking at these attributes, we have concluded that the Midwestern System, Kumba, and  Minas Rio are the standouts. We expect these assets will be cash positive in 2016, have positive NPV and upside to production. The remaining assets will likely only appeal to buyers with a bullish long term view of iron ore prices, a strategic interest in acquiring the assets, or a belief they can fundamentally lower costs.


What's included?

This report includes 1 file(s)

  • Iron Ore M&A: evaluating the opportunities PDF - 314.92 KB 7 Pages, 1 Tables, 5 Figures

Description

This Metals Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

For industry participants and advisors who want to look at the trends, risks and issues surrounding this topic, this report gives you an expert point of view to help inform your decision making.

Our analysts are based in the markets they analyse and work with high-quality proprietary data to provide consistent and reliable insight.

We provide unique in-depth analysis of the metals supply industry so you can make confident strategic decisions.

  • Executive summary
  • Background
  • Few assets with positive margins
  • Limited room for production increase
  • Big resources, not great resources

In this report there are 6 tables or charts, including:

  • Executive summary
  • Background
  • Few assets with positive margins
    • 2016 breakeven costs by asset (62% Fe fines delivered to China)
    • Remaining PV vs. 2016 cash operating margin
  • Limited room for production increase
    • Asset production (wet Mt)
  • Big resources, not great resources
    • Asset resource size and quality (bubble size as raw mineral resources in wet Mt)
    • 2016 operating margin vs. marketable reserves
    • Key metrics comparative table by asset
Requester's name : .............
Department : .............
Authoriser's Name : .............
Authoriser's signature : .............
Date : .............
Cost Centre : .............

Questions about this report?

Frequently Asked Questions

Mailenquiries@woodmac.com
  • Europe: +44 131 243 4699
  • Americas: +1 713 470 1900
  • Asia Pacific: +61 2 8224 8898
contact us

Why Wood Mackenzie?

Wood Mackenzie, a Verisk Analytics business, has been a trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, empowering clients to make better strategic decisions with objective analysis and advice.

We work across every sector of oil, gas, power, renewables, chemicals, metals and mining, covering more than 150 countries. Our proprietary data and models are at the core of everything we do, ensuring our independent asset and company valuations are thoroughly robust and that we offer an accurate forward-looking view of economic indicators such as market supply, demand and price trends.

Our 500+ analysts are based in the regions they cover, cultivating an unrivalled depth of understanding to help clients accurately identify new opportunities, define their strategy and improve business performance.

At every stage, our teams readily collaborate and share their insight to provide an integrated perspective across entire industries. It is this unique and rigorous analytical approach that ensures we are recognised as the industry standard by the world’s most innovative organisations.