Australia: metals and mining activity down 26.76% in Q1
Australia’s metals and mining industry saw a drop of 26.76% in overall deal activity during Q1 2021, when compared with the last four-quarter average, according to the latest analysis from GlobalData’s deals database.
A total of 65 deals worth $183.92mn were announced in Q1 2021, compared with the last four-quarter average of 88.75 deals.
Mergers & Acquisitions
M&A was the leading category in the quarter with 62 deals which accounted for 95.4% of all deals. In second place was private equity with two deals, followed by venture financing with one transaction, respectively accounting for 3.1% and 1.5% of overall deal activity in Australia’s metals and mining industry during the quarter.
In terms of value of deals, M&A was the leading deal category with total deals worth $160.05mn, while private equity and venture financing deals totalled $23.28mn and $0.59mn, respectively.
Australia's top mining and metals deals
Australia's top five metals and mining industry deals accounted for 59.9% of the overall value during Q1 2021. The combined value of the top five metals & mining deals stood at $110.25mn, against the overall value of $183.92mn recorded for the quarter.
Top five deals tracked by GlobalData:
- Cyprium Metals’ $46.09m acquisition of Paterson Copper
- The $23.28mn private equity deal with Newcrest Mining by Allan Gray Australia and Orbis Investment Management
- Northern Star (Carosue Dam)’s $13.94mn asset transaction with Shannon Resources
- The $13.63mn acquisition deal with Big River Gold by Dundee
- Red Emperor Resources’ asset transaction with Great Northern Palladium for $13.31mn
People Moves: Peter Cunningham appointed Rio Tinto CFO
Rio Tinto has appointed Peter Cunningham as Chief Financial Officer (CFO) with immediate effect. Peter, who has been Interim Chief Financial Officer since 1 January 2021, will also join the Rio Tinto Board as an executive director at the same time.
Peter Cunningham appointed Rio Tinto CFO
Peter Cunningham was previously Group Controller and has held a number of senior financial and non-financial leadership positions across Rio Tinto in Australia and the UK. In a career spanning 28 years with Rio Tinto, he has held roles including Global Head of Health, Safety, Environment & Communities; Head of Energy and Climate Strategy; and Head of Investor Relations.
Prior to joining Rio Tinto, Peter qualified as a chartered accountant.
Rio Tinto CEO Jakob Stausholm commented: “I am delighted to confirm Peter in the role and, having worked closely with him for a number of years, I know he is the ideal person to be our Chief Financial Officer. His detailed knowledge of the company and of the financial and non-financial drivers of our industry will be invaluable as we continue to strengthen Rio Tinto.”
Rio Tinto Chairman Simon Thompson added: "I look forward to Peter joining the Rio Tinto Board and know from experience that his deep understanding of Rio Tinto and commitment to disciplined capital allocation will serve shareholders well and enrich our Board discussions.”
Rio Tinto aiming for net zero by 2050
Rio Tinto is aiming to reach net zero emissions across its operations by 2050. Across the company, it is targeting a 15% reduction in absolute emissions and a 30% reduction in emissions intensity by 2030, from a 2018 baseline.
Aluminium is found in everything from cars to phones. But one of the challenges of producing this essential material responsibly is finding ways to decarbonise the process.
Part of the reason is creating alumina – the main ingredient in aluminium – takes a lot of energy, which in turn creates greenhouse gas emissions. New technologies will be essential to helping reduce emissions, but many haven’t been proven. And some not yet even discovered. Rio Tinto is partnering with the Australian Renewable Energy Agency (ARENA)to develop hydrogen energy options and make a positive step towards these goals.