Why South32 wants niobium
Independent Financial Research
Rumours suggest embattled miner South32 is looking to Anglo American's crumbling empire for a big acquisition. Is this a good idea? Anglo American (LSE:AAL) was, for a time, the largest miner in the world. Today, as it struggles under mountainous debt and lower revenue, it is shedding a phenomenal 85,000 jobs and selling more than half its assets. For many miners, this is an ominous sign. If the once mighty Anglo can fall, anyone can. For others, there is a sniff of opportunity. Among the array of mines being disposed is Anglo’s little known niobium mine in Brazil. South32 (ASX:S32) is rumored to be interested in the asset which could fetch a price of about US$1bn, or about a fifth of South32’s market capitalization. South32 is making a big bet on an obscure metal at a time when its own equity is being hammered and miners globally are under pressure. Why take such a big gamble? Read full article here: (VIEW LINK)
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