RE: BHPToday 08:26
Very interesting deal, and incredibly positive move for the copper sector and any M&A deals in play.
BHP's intention will have a flow on affect in the copper industry as this offer signals that the race to secure major copper deposits has well and truly begun.
The market will now increase its activity in regards to copper M&A as mining companies are like sheep and when a really big guy makes a move in a sector, they tend to follow the leader!
Have BHP given up on Solgold? We don't know yet. They still own stock, and even if they pass (or have missed out which may be the case), they would want a return on the 45p they paid years ago. Today is confirmation that we have indeed hit the copper M&A cycle. Key analyst H&P has advised BHP over the years, and they have stuck a 64p target on Solgold by June 24. This is a 30% increase as to what BHP paid many years ago. Would BHP accept a 64p takeover for Solgold or would they challenge it? Even with the Anglo deal in play, I still think they would challenge it but we will know soon enough.
Today also confirms that we cannot believe anything which Henry says. I'll share some recent famous Henry contradictions shortly.
Newmont - are very much still in the Solgold game and are yet to confirm their hand. Was there not an article published last month eluding to a China/Newmont deal for Solgold.
Jiangxi - still sitting pretty and now boast having a friendly as a NED on the Solgold BOD. Perhaps BHP and Hanrine are focusing elsewhere as they have missed out on the Solgold opportunity.
Hanrine - confirmation that Ecuador is very much in her plans with $120m commitment via Titan Minerals. A great story for ecuador mining
Fortescue/Wyloo - Yet to show their hand
So the West has made a big statement today regarding their ambition to aggregate global copper company's and assets.
Its now China's turn to respond.