ACTIVIST investor Elliott Management is setting up a company that aims to invest $1bn buying undervalued mining assets, according to a report by the Financial Times on Friday.
Hyperion, to be led by former Newcrest CEO Sandeep Biswas will look at assets in the base and precious metals sectors as well as minerals considered critical to energy transition, the newspaper said citing market sources.The Financial Times described Biswas as a veteran dealmaker and operator who revitalised Newcrest’s underperforming assets before selling it for $19bn to rival Newmont last year.
Metal prices have corrected heavily in the last 12 months owing to macroeconomic weakness. But they are expected to rebound, partly because it is increasingly difficult to permit new mine builds – a factor that is also depressing company valuations.
Hyperion will be the latest on the investment radar in world mining following foundings of other private capital companies such as Appian Capital and Orion Resource Partners. They are joined by sovereign wealth in the form of Saudi Arabia. Its Manara Minerals joint venture was established last year.
Elliott Management declined to comment, said the Financial Times.
Hyperion will consider assets ranging from single mines to more complex transactions such as buyouts of public companies and acquiring stakes in existing groups.
Elliott is also willing to leverage the $65bn it has under management to go after larger deals if the opportunity arises, said the newspaper. The firm’s goal is to finance most of the investment but it could opportunistically partner with a co-investor for bigger transactions.
