A buyer’s market

January 2016: As mining companies rush to cut costs and deleverage straining balance sheets, they could be throwing the baby out with the bathwater. That is the hope of a new breed of investors in mining who are picking up assets at bargain prices which were not even up for sale at the peak of the commodity boom.

Last year, Audley Capital acquired the Mantos Blancos and Mantoverde copper mines in Region III from Anglo American (LON: AAL) for an initial US$300M. Their bet is that they can squeeze more value and lower costs from the aging operations than a behemoth like AAL – they should have the right man in charge: as AALs head of copper from 2009 to 2013, John MacKenzie will know where the treasure is buried.

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