Exclusive outtakes from industry leaders
This time last year, steel mills and base metal miners were in an unprecedented slump, with metal prices bouncing off multi-year lows amid steep economic downturn. Since then, the world economy has turned upwards and demand for metal is resurging. While many analysts have cited economic recovery for the price gains, they add that demand signals show only slow, choppy growth. Whether metal prices have gained as investors search for a place to put excess liquidity or are based in solid supply/demand fundamentals remains a question. Get exclusive insight into the sector from the Reuters Global Mining and Steel Summit taking place in New York, London and Sydney on Mar 8-11.
There is an entire industry out there about what to do to make a merger a success. Many of us know bankers or lawyers who work for weeks and hours on end just to make sure their deals are perfectly done with all the t’s crossed and the i’s dotted.
Millions of dollars are spent on just teaching people the best way to get a transaction from idea to completion.
Kinross Gold’s CEO Tye Burt said at the Reuters Global Mining and Steel Summit on Wednesday that as far as mergers and acquisitions go, his company is in a pretty good place — there are more deals hitting his desk, sellers are getting more motivated and Kinross, the third-largest of the Canadian gold miners, has the cash to do a little shopping.
While Burt did not expect to be party to one of those huge mega-deals, he did indicate the company was keeping its options open — and was listening for bargains.
As a global recession hits just about every industry, steelmakers too have felt the brunt, logging dramatic declines in demand.
Output for steel globally sank nearly 25 percent in January alone, with North America posting a more than 50 percent decline. Still analysts say the steel industry may be positioned to survive a recession.