Mining

Rio Tinto gets bad recruitment steer from Canberra

15 Sep 2020

Australia’s treasurer wants the miner’s next CEO to be Australian, after Frenchman J-S Jacques stepped down over the destruction of an Aboriginal site. Cultural sensitivity is a priority, but the goal can be achieved in other ways. Shareholders deserve the best boss Rio can find.

Rio Tinto rebellion sets new ESG bar

11 Sep 2020

CEO J-S Jacques and two deputies will step down after an outcry over the miner's destruction of Aboriginal heritage sites. Aussie shareholders led a charge that may inspire other socially conscious investors. Bosses and boards hiding behind strong returns have been given notice.

Rio Tinto board can choose CEO – at expense of ESG

10 Sep 2020

Many shareholders want harsher punishments for the mining giant’s destruction of Aboriginal heritage sites. Robust returns are one reason to stop short of axing boss Jean-Sebastien Jacques. If he stays, though, Rio’s responsible investing credentials will be deeply discounted.

De Beers’ rocks are in an increasingly hard place

3 Sep 2020

Even before Covid-19, the Anglo American-owned diamond giant’s lunch was being eaten by Russia’s Alrosa and cheaper man-made stones. De Beers still has access to Botswana’s high-quality gems. But lockdowns are blunting the edge its quirky sales method has enabled.

Corona Capital: Davos delay, Political TV ratings

26 Aug 2020

Concise views on the pandemic’s corporate and financial fallout: The World Economic Forum’s annual winter meeting becomes a summer gathering; and in the U.S., the Democrats’ online spectacle leads TV ratings over the Republicans’ more traditional convention.

Buffett’s crisis-fighting machine is broken

24 Aug 2020

When Berkshire Hathaway takes a stake in a gold miner or cuts some bank holdings, investors notice. But these trades offer little insight into the Oracle of Omaha’s downturn game plan. Dig deeper, and it seems his philosophy hasn’t changed much – it just no longer works.

Glencore’s Glasenberg shows odd dividend caution

6 Aug 2020

The gunslinging boss of the big miner-trader is holstering this year’s $2.6 bln dividend. The company blames coronavirus uncertainty, but Glencore’s cash flow is holding up and metal prices are mostly recovering. The South African may be bracing for a hefty U.S. corruption fine.

All sides could gain from $42 bln NorNickel reset

28 Jul 2020

An agreed management shakeup would protect the role of CEO Vladimir Potanin, who holds 35% in the Russian miner, and dodge legal disruption. Rusal, with 28%, could eke out more control. Other investors would get a better-run company, and a lower risk of ecological catastrophe.

Gold’s enduring high gives miners room to be bold

10 Jul 2020

Bullion has breached $1,800 per ounce amid fears of a viral surge. Mine bosses’ enthusiasm to develop lower grade reserves that only make sense at exalted price levels is usually dampened by worries of a sharp snapback. An extended Covid-19 tail means more will take the chance.

Gold mining in Greenland is smarter than it sounds

3 Jul 2020

Canada’s AEX Gold wants to raise 45 mln pounds via a UK listing to reopen a mine on the North Atlantic island. The tricky location and fickle bullion prices are obvious risks. The potential returns and scope to gain a head start in a local resource scramble are opportunities.

Tesla kills three birds with one Congolese stone

17 Jun 2020

The electric car giant is buying 6,000 tonnes of cobalt a year from Glencore’s mines in the chaotic African state. With China corralling 69% of the metal’s production, Elon Musk gets to guarantee supplies while minimising child labour worries. It may even squeeze Western rivals.

Corona Capital: Travel companies, Oil

18 May 2020

Concise views on the pandemic’s corporate and financial fallout: Travel companies have sunnier days; oil traders have triumph of hope over experience.

Vedanta minorities can exact a better exit

14 May 2020

Tycoon Anil Agarwal wants to buy out a cash cow of his mining empire for $4.3 bln. True to form, the bid is opportunistically timed after a stock slump. Other shareholders have a route to improved terms but the group’s wider debt issues will limit how hard they push for more.

Corona Capital: HCA Healthcare, Kering

21 Apr 2020

Concise views on the pandemic’s corporate and financial fallout: The virus helps one part of the U.S. healthcare industry, but harms another; and luxury group Kering's Chinese fortunes may depend on an end to Italy's lockdown.

Glencore mine grab would have a tiny silver lining

20 Apr 2020

Zambia may seize assets, including the commodity giant’s Mopani copper mine, to help with Chinese debt relief, the WSJ says. That would make the African state a pariah and confirm fears of debt-trap diplomacy by Beijing. At least Glencore might win some useful U.S. sympathy.

Corona Capital: Amazon, Procter & Gamble

17 Apr 2020

Concise views on the pandemic’s corporate and financial fallout: Amazon CEO Jeff Bezos pokes the French government; consumer giant P&G’s good fortune will be hard to keep.

Climate fight at Mizuho previews wider clash

9 Apr 2020

An investor group is urging the $29 bln finance giant to reduce lending for coal. With Japan in a state of coronavirus emergency, it’s an odd time to pick this battle, nor is Mizuho in charge of national energy policy – the real problem. But activists have to start somewhere.

Animal spirits temper gold miners’ virus appeal

25 Feb 2020

An outbreak of the coronavirus in Italy boosted the price of bullion. While producers of the yellow metal stand to gain from higher prices, a global pandemic could hit some production. The bigger risk is CEOs squandering the windfall on unprofitable ventures or expensive M&A.

Glencore split could spring-clean dusty valuation

18 Feb 2020

The commodity giant’s coal operations dragged in 2019. Spinning them off into a separate entity would underline the low-carbon potential of the copper and cobalt assets left behind. That could leave billionaire CEO Ivan Glasenberg with a more valuable overall cake.

BHP’s best-laid plans may go awry for new boss

18 Feb 2020

The mining giant delivered a 39% rise in half-year profit, giving a running start to CEO Mike Henry. Since assuming the role on Jan. 1, virus-hit China has threatened iron ore demand. A strategic focus on investing in growth and returning capital to shareholders could be on hold.