Insight
Mineral Resources tops up reserves with Atlas acquisition
Report summary
Mineral Resources will acquire Atlas Iron in a US$215 million all-scrip deal. This is a 10% discount to our valuation of Atlas and implies a long term benchmark iron ore price of US$55/tonne (62% Fe fines, CFR China). The deal will enable Mineral Resources to achieve cost savings by amalgamating its existing Pilbara operations with Atlas Iron and provides a pipeline of projects to replace its depleting reserves. For Atlas, it provides a path for its projects to be developed - something Atlas would be unable to do independently because of its high debt.
Table of contents
- Overview
- Deal summary and analysis
-
Strategic rationale
- Atlas Iron
- Mineral Resources
Tables and charts
This report includes 4 images and tables including:
- Mineral Resources and Atlas Iron Pilbara iron ore mines
- Deal summary
- Economic assumptions
- China delivered cost curve (VIU adjusted)
What's included
This report contains:
Other reports you may be interested in
Insight
Global upstream M&A in brief
The global upstream M&A in brief provides the Wood Mackenzie view on all of the key M&A events as they unfold.
$1,350
Asset Report
Casino
The Casino Area development lies in the Otway Basin off the south coast of Victoria.
$3,100
Asset Report
Bougouni - Lithium mine project
A detailed analysis of the Bougouni lithium mineral project.
$2,250