Mining & Investment Insights
Curated interviews, articles and deal case studies that focus on mining investment opportunities in Latin America. Please contact Harry.Williams@gfcmediagroup.com if you have a case study and/or insights to share with the community.
HSBC have been fundamental in helping a number of mining companies meet their CAPEX needs throughout 2017. We caught up with Adam Hendley, MD, Head of Mining & Metals - US, Canada & Latin America, HSBC, to discuss how HSBC went about this and where he sees the biggest opportunities in the Latin America mining industry.
Andor Lips, Fund Manager, Commodity Discovery Fund, discusses investing into early-stage mining projects, and anticipating the winners in the current energy revolution
For more than three decades, Chile was the poster child of neo-liberalism, the country that followed diligently the IMF playbook. Such discipline was rewarded with impressive growth and the envy of its Latin American peers. By 2010, pundits predicted that Chile was but a few years shy of becoming Latin America’s first “developed” nation. The latest down-cycle, marked by both low copper prices and the flirting with expanded government, created a new set of obstacles for Chile. The question hovering over voters ahead of the Presidential elections in November is, “Can Chile get its groove back?”
For the past few years Chile has seen its worst economic performance since the crisis of 1981, largely the result of depressed copper prices – which have been falling since 2011. With copper being bested by rivals such as iron ore and nickel, persistent global supply disruptions, and a lack of economic diversification, some have wondered whether Chile could continue to lose out on critical investment to commodity-rich neighbours like Peru.
High levels of oversubscription on Codelco’s local currency bond suggests the country’s local markets remain liquid as its outlook and fiscal situation continues to stabilise.
Emerging markets are clearly susceptible to factors like a US Federal Reserve interest rate hike and Brexit, but they are most vulnerable to fluctuating commodity prices. Although exports have seen their currencies strengthen and bond yields fall on rising commodity prices, interestingly, EM commodity importers have not yet felt the negative effects of higher prices.
Brazilian corporates like mining giant Vale are looking to tap international markets in a brief window provided by higher commodity prices and an improving economic outlook in the country. The majority of funding would be used to refinance existing debt.
Analysts at BBH, a New York-based investment house, see many reasons to be optimistic about Peru’s economy following the first round of elections which took place in the Latin American country this week.
Chilean Antofagasta is looking to issue a new bond, according to reports. Against the backdrop of the plight of emerging markets, the mining industry is struggling amid a wider commodities slowdown.
17 Apr 2018
13 Dec 2017