Agoracom: Small Cap Investment - Noront Resources - How to do M&A in a commodities bull market

HIGH-GRADE NI-CU-PT-PD-ZN-CR-AU-V-TI DISCOVERIES IN THE "RING OF FIRE"

NI 43-101 Update (September 2012): 11.1 Mt @ 1.68% Ni, 0.87% Cu, 0.89 gpt Pt and 3.09 gpt Pd and 0.18 gpt Au (Proven & Probable Reserves) / 8.9 Mt @ 1.10% Ni, 1.14% Cu, 1.16 gpt Pt and 3.49 gpt Pd and 0.30 gpt Au (Inferred Resource)

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Hobbit

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How to do M&A in a commodities bull market - Coles Notes for BHP

posted on Oct 08, 2021 09:28PM

There may be hope yet...don't be shy BHP, dig deep.

https://www.investorschronicle.co.uk/news/2021/10/07/how-to-do-m-a-in-a-commodities-bull-market/

This dynamic is not new. BHP bought into SolGold in 2018 when it already had a major miner on the register in Newcrest Mining (Aus:NCM). It does look to have been beaten to the punch with Noront Resources(Can:NOT) by the founder of fellow Australian iron ore miner Fortescue Metals Group (Aus:FMG), Andrew Forrest, who has built up a stake of 37 per cent in the Canadian nickel explorer through his private company Wyloo Metals.

Therein lies the difficulty – is it worth potentially paying over the odds for a very early-stage project to rip it from the hands of competitors, or pay even more for something that is more certain? In BHP's case, the likely answer is yes to both, judging by its latest financial disclosures. Its copper exploration spend of $54m for the 12 months to 30 June – compared with over $500m for petroleum – shows dipping into those bursting pockets might be the only option.