2013-03-18 12:35:42 - Bloomberg recently reported* that Waterton Global Resource Management is prepared to deploy billions of dollars into the mining industry. Waterton’s strategic decision is based on historically low valuations for mining companies coupled with declining sources of equity capital available for project development.
Despite a boom in commodities demand, mining stocks have trailed the broader equity markets in the past twelve months. The Bloomberg World Mining Index is down 7.8 percent, while the Bloomberg World Index has gained 11 percent. According to Waterton Global -- a Toronto-based firm that has $1 billion to invest in precious-metals projects and companies -- with no improvement in the market, more mining companies will seek out private capital.
“The outlook for the equity market is not good for gold companies”, said Isser Elishis, Chief Investment Officer at Waterton “we have our catcher’s mitt there ready to go.”
Waterton Global Resources together with Apollo Global Management LLC (APO), Commodity trader Trafigura Beeher BV and Denham Capital Management LP are reported
to be setting up its first natural-resources fund and are assessing at least four potential mining deals.
Buyout firms are helping to fill a funding gap after mining-industry equity sales dropped for a third straight year in 2012 and bank lending slumped. Producers of metals and other mined commodities such as coal and diamonds still face the challenge of completing tens of billions of dollars of capital projects to meet a forecast increase in global demand.
About Waterton Global Resource Management
Waterton Global leverages its experience as a leader in resource investing in Canada, one of the largest mining nations in the world. Waterton Global’s position in the local market and extensive network in key geographic regions around the world enables us to execute effectively across the globe. Waterton Global’s team brings a diverse portfolio and 12-year track record as leading investors in private and public companies in North America, Europe, Asia, and Australia.
Waterton has established a strong track record of structuring and managing investments in the precious metals sector. Our internal project evaluations group formerly was responsible for evaluating and vetting all asset acquisitions for Barrick Gold Corporation (NYSE:ABX), the world’s largest gold producer.
From project development to asset acquisitions, Waterton’s in-house team and advisory board include renowned financial and technical experts with the breadth of experience necessary to invest and develop mining assets globally. Our integrated team understands the challenges of completing projects on time and on budget, and we leverage our extensive network and strong relationships in the global mining industry to enable our partners to access the expertise they need, when they need it. Wateron Corporate Website: www.watertonglobalresource.com/
* Bloomberg - Jan 23, 2013