•  Martin French 

    Mining – Sector focus

    Author: Martin French, Relationship Director
    Publication date: 01.08.2010

     
    Commodity prices have remained resilient in 2010, with stronger cash flows underpinning expansionary projects across the sector as mining companies focus on organic Tier 1 asset growth. Global economic volatility seems set to continue with the risk of changing political and fiscal regimes posing fresh challenges, notably in Australia where the new government plans to push ahead with Mineral Resource Rent Tax (MRRT) following detailed, albeit reluctant, consultation with the industry.

     
    Chinese look to consolidation and protection of national interests 

     
    M&A activity thus far in 2010 has remained largely subdued (recent unfolding events excepted), with capacity in the bond and loan markets to support large or transforming transactions remaining a constraining factor. It should not be assumed that M&A will remain the preserve of the senior diversified mining houses.

     
    Characterised by Chinalco’s ambitions in the sector in 2009, increasingly confident Chinese and other sovereign wealth funds have emerged as a potent force, seeking to protect national interests as urbanisation continues apace.

     
    Evidence suggests that recent core refinancing activity, whether price or maturity driven, has benefited from tighter pricing and access to longer tenors in the syndicated loan market for solid investment rated borrowers.

     
    A long-established presence in the syndicated loan market, the bank has a proven track record in leading sterling bond issues, and our euro capability continues to build. Our solutions are complemented by full service structuring and hedging capabilities.

     
    Providing in-depth sector insight 

     
    I have 30 years’ experience with Lloyds, 20 of which have been in the Major Corporates arena, with more than a decade focused on the mining industry. This has provided me with strong insight into the sector and an opportunity to build and deepen client relationships. We believe Lloyds Bank Corporate Markets’ commitment to the sector and its proven ‘through the cycle’ relationship banking is fundamental to our client-focused approach.

     
    Source: This article was first published in Lloyds Banking Group - Perspective Magazine Edition 2.
     

2/25/2018 1:41:03 AM