• Share
  • Email
  • Embed
  • Like
  • Save
  • Private Content
Investing in the Industry: Mining Finance and M&A Outlook - Kimmo Viertola, Finnish Industry Investment
 

Investing in the Industry: Mining Finance and M&A Outlook - Kimmo Viertola, Finnish Industry Investment

on

  • 455 views

Investing in the Industry: Mining Finance and M&A Outlook ...

Investing in the Industry: Mining Finance and M&A Outlook
Kimmo Viertola, Kimmo Viertola, Director, Investment Programmes, Finnish Industry Investment

Mining On Top: Helsinki
16-17 September 2013 | Helsinki

Statistics

Views

Total Views
455
Views on SlideShare
455
Embed Views
0

Actions

Likes
0
Downloads
6
Comments
0

0 Embeds 0

No embeds

Accessibility

Upload Details

Uploaded via as Adobe PDF

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    Investing in the Industry: Mining Finance and M&A Outlook - Kimmo Viertola, Finnish Industry Investment Investing in the Industry: Mining Finance and M&A Outlook - Kimmo Viertola, Finnish Industry Investment Presentation Transcript

    • Investing in the Industry: Mining Finance and M&A Outlook Mining On Top: Helsinki 16.9.-17.9.2013 Kimmo Viertola Finnish Industry Investment Ltd.
    • Finnish Industry Investment Ltd • Government-owned investment company founded in 1995 • Promotes and stimulates Finnish business, employment and economic growth • Investments: - in private equity funds and directly in growth companies - always together and on same terms with private co-investors • Investments and commitments total €718m (31.12.2012) 19 % 28 % 17 % 21 % 8 % 7 % Early-stage funds €136,3m Growth funds €204,8m Buyout funds €121,3m Direct investments €147,7m Start Fund I Ky €54,6m FoF Growth €54,0m
    • FII Mining Cluster Investment Program • Total funds available 30M€ for: • Junior mining companies in the feasibility stage or near production • Participation in the equity/loan issues • Internationally growing Finnish mining cluster companies providing services, machines and products to miners • Program aimed for 5 years. • Goal to increase the ammount of listed exploration and mining companies in the OMX Helsinki Exchange • Investment criteria: • Co-investments with private investors • FII investment below 50% of the total financing • Minority shareholder • Projects are in Finland • ESG 3
    • Speedometer of mining projects 4 ”Development companies” Pre-production Production Exploration Development Final feasibility study Preliminary feasibility study Small €4m Large €20m Small €9m Large €50m Small €19m Large €100m Small €200m Large €1000m Development phases of mining projects (approximate) ”Exploration companies” ”Production companies”
    • Macro and micro factors conspired against the sector in 2012… Source: Ernst & Young Confidence crisis
    • …perpetuating a two-tier capital environment… Source: Ernst & Young
    • …and risk averse M&A Source: pwc
    • Capital raising trends
    • Investments in Juniors Source: Ernst & Young
    • New buyers in 2012: countercyclical confidence • State-owned enterprises – strategic, long-term rew material supply • Financial investors – foothold minority positions for investment returns • Commodity traders – greater integration and operational influence • ”Other sector” acquirers – vertical integration to manage price volatility and secure stable supply Source: Ernst & Young
    • Equity raising by Explorers
    • Creating a funding gap for explorers Source: Ernst & Young
    • IPOs
    • Follow-on equity
    • Convertibles
    • Bonds
    • Syndicated Loans
    • Emergence of non-traditional investors Source: Ernst & Young
    • Alternative source of financing - streaming
    • State-owned entities demonstrated the most significant buying power in 2012 Source: Ernst & Young, ThomsonONE
    • COMPANY YEAR INSTRUMENT AMOUNT (M€) Outokumpu Oyj 2013 Revolving credit facility 900,0 First Quantum Minerals Ltd 2012 Senior term and revolving debt facilities 757,8 Boliden AB 2012 Multi-currency revolving credit facility (replacing previous) 400,0 Outokumpu Oyj 2012 Multi-currency revolving credit facility 400,0 Lundin Mining Corporation 2012 Increase of revolving credit facility from 300M to 500M USD 151,6 Northland Resources S.A. 2012 Senior secured bond offering 265,2 Northland Resources S.A. 2013 Issue of first lien bond loan and warrants 253,9 Outokumpu Oyj 2012 Revolving credit facility 250,0 Northland Resources S.A. 2013 Issue of second lien convertible bonds 222,9 Outokumpu Oyj 2012 Bond issue 150,0 Talvivaara Mining Company Plc 2012 Issue of senior unsecured bonds 110,0 Northland Resources S.A. 2013 Issue of second lien convertible bonds 58,2 Northland Resources S.A. 2012 Financial leases 49,3 Boliden AB 2012 Loan facility 40,0 Northland Resources S.A. 2012 Cost overrun facility 30,3 Lucara Diamond Corp. 2012 Revolving term credit facility 18,9 Dannemora Mineral AB 2012 Directed issue of convertible debentures 15,6 Northland Resources S.A. 2012 Bond loan issue 15,2 Northland Resources S.A. 2013 Short-term debt financing 15,2 Altona Mining Ltd 2012/2013 Debt facility 14,0 Avocet Mining 2013 Loan facility 11,4 Nordic Mines AB 2012 Temporary debt facility 10,9 Northland Resources S.A. 2012 Financial leases 6,1 Sotkamo Silver AB 2013 Supplier credit financing 5,0 Elgin Mining Inc. 2013 Bridge loan credit facility 3,6 IGE Resources AB 2013 Temporary loan combined with a security 0,5 Wiking Mineral AB 2013 Reconstruction loan 0,1 Debt Financing 2012 - 2013
    • COMPANY YEAR INSTRUMENT AMOUNT (M€) Outokumpu Oyj 2012 Rights issue 1006,0 Talvivaara Mining Company Plc 2013 Rights issue 261,0 Northland Resources S.A. 2012 Equity offering 246,3 Talvivaara Mining Company Plc 2012 Placing of ordinary shares 83,0 Nordic Mines AB 2012/2013 Rights issue 32,2 Nordic Mines AB 2012 Rights issue 27,0 Western Areas Ltd 2012 Equity placement 24,4 Dannemora Mineral AB 2013 Rights issue 24,1 Avalon Minerals Ltd 2013 MoU / Directed issue (objective: 17,5 m€) Canceled Mustavaaran Kaivos Oy 2013 Directed issue 15,0 IGE Resources AB 2012 Rights issue 12,1 Flinders Resources Ltd 2012 Private placement 10,9 Dragon Mining Ltd 2012 Rights issue 10,5 Nordic Mines AB 2012 Directed issue 10,2 Wiking Mineral AB 2012 Offset issue (objective: 7,5 m€) Canceled Western Areas Ltd 2012/2013 Share purchase plan 7,3 Avalon Minerals Ltd 2012 Institutional equity placement 5,9 Sotkamo Silver AB 2012 Preferential and directed issue 5,6 Endomines Ltd 2013 Directed new share issue 5,5 Beowulf Mining Plc 2013 Issue of new shares 4,9 Beowulf Mining Plc 2013 Issue of new shares 4,8 Nordic Mining ASA 2012 Rights issue 4,5 Keliber Oy 2012 New equity issue 4,0 Avalon Minerals Ltd 2013 Rights issue (in progress) (3,9) Mawson Resources Ltd 2013 Private placement 3,1 Equity Financing 2012 - 2013 (1/2)
    • COMPANY YEAR INSTRUMENT AMOUNT (M€) Kopy Goldfields AB 2012 New share issue and rights issue 3,0 Nordic Mining ASA 2013 Rights issue 3,0 Kopy Goldfields AB 2012 Issue of shares and warrants 2,8 Avalon Minerals Ltd 2012 Issue of shares 2,5 Botnia Exploration Holding AB 2012 Rights issue 2,3 Elgin Mining Inc. 2013 Private placement offering (1 share + ½ warrant) (in progress) (2,2) Kopparberg Mineral AB 2012 New share issue 2,1 Hannans Reward Ltd 2013 Private placement 2,0 Cullen Resources Ltd 2013 Equity placement 1,5 Cullen Resources Ltd 2012 Equity placement 1,5 Kopy Goldfields AB 2013 Rights issue 1,3 Hannans Reward Ltd 2012 Share purchase plan and placement 1,2 Avalon Minerals Ltd 2013 Institutional equity placement 0,9 Avalon Minerals Ltd 2013 Equity placement 0,8 Nordic Mining ASA 2013 Private placement 0,8 Botnia Exploration Holding AB 2013 Rights issue 0,8 Botnia Exploration Holding AB 2013 Directed issue 0,7 Arctic Gold AB 2013 Issue of new shares 0,6 Nordic Mining ASA 2013 Subsequent offering 0,5 Avalon Minerals Ltd 2013 Issue of shares (in progress) (0,5) Botnia Exploration Holding AB 2012 Directed offset issue 0,3 Botnia Exploration Holding AB 2012 Directed offset issue 0,3 Talga Resources Ltd 2013 Share purchase plan 0,1 Equity Financing 2012 - 2013 (2/2)
    • Investing in Growth www.industryinvestment.com 16.9.2013