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:
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