lobe says move on Inmet an uncommon sight these days
Ticker Symbol: C:IMN C:FM C:NSU C:HBM C:S C:MX C:ASR


Globe says move on Inmet an uncommon sight these days


Inmet Mining Corp (C:IMN) 
Shares Issued 69,365,748
Last Close 1/9/2013 $72.25
Thursday January 10 2013 - In the News

Also First Quantum Minerals Ltd (C:FM) In the News
Also Nevsun Resources Ltd (C:NSU) In the News
Also HudBay Minerals Inc (C:HBM) In the News
Also Sherritt International Corp (C:S) In the News
Also Methanex Corp (C:MX) In the News
Also Alacer Gold Corp (C:ASR) In the News

The Globe and Mail reports in its Thursday, Jan. 10, edition that the attempted takeout of Inmet Mining by First Quantum Minerals has become a rarity, a sign of rising anxiety about the long-term outlook for the commodity supercycle. The Globe's Scott Barlow writes that today's low interest rates provide strong support for M&A in the Canadian mining sector. Despite the fertile deal conditions, takeover activity plunged in 2012. Bloomberg reports that 157 mergers and acquisitions involving Canadian companies in the materials sector were completed in the past 12 months with a total value of $28.9-billion. In comparison, 226 deals were done in 2010 with a combined value of $84.8-billion. The success of an acquisition depends largely on the free cash flow of the company being bought. There are 10 companies in the S&P/TSX materials index with a free cash flow yield above 4 per cent, a level that would make them attractive as acquisitions at current interest rates. The top five by this metric, according to Bloomberg, are Nevsun Resources, Hudbay Minerals, Sherritt International, Methanex and Alacer Gold. Mr. Barlow says each of these companies would appear to be a prime candidate to be acquired.