atans1

Posts Tagged ‘Mining’

Temasek: MM Lee being ignored? II

In Energy, Mining, Temasek on 17/05/2010 at 10:39 am

No not again. Temasek does another natural resources deal, it was reported last week.

Temasek and Hopu Investment Management, a Beijing-based firm, are to spend more than US$1bn to acquire a stake in New York-listed Chesapeake Energy; a US producer of natural gas from shale rock. They follow other foreign investors into the sector.

They  agreed to buy US$600m of convertible preferred stock and have an additional 30-day option to acquire a further US$500m of the stock, which they are “highly likely” to exercise alongside other investors. Bloomberg reports.

Cynics must be wrong to continue believing that the government (and MM lee in particular) controls the decision-making process at Temasek.  Temasek has the independence to do the wrong things. Bit surprising that Temasek’s PR machine does not highlight this. Are there subversives in the PR department that want to hide the truth of the relationship between Temasek and the government from the public. Friends of SDP and Dr Chee?

But still, one would have tot Temasek would listen to someone whom Time magazine rates as among the 100 most influential  persons in the world. Sigh, reminds me that somewhere in the bible there is something about a prophet being without honour in his own home.

http://atans1.wordpress.com/2010/04/05/temasek-mm-lee-being-ignored/

Let’s hope that the Fates do not punish the hubris of Temasek’s management. We lose.

BTW three mining deals you may not be aware of

It agreed to buy a peanutty US$50 million stake in the January share sale in Hong Kong by SouthGobi Energy Resources Ltd., a coal producer operating in Mongolia.

It provided funding for Niko Resources Ltd.’s $300 million acquisition of Black Gold Energy LLC. Temasek bought the C$310 million convertible bonds issued by Niko, the Calgary-based oil and natural-gas explorer said in a statement on Dec. 30.

And it bought 382,000 additional shares in  Freeport-McMoRan Copper & Gold Inc., the world’s largest publicly traded copper producer, in the first quarter, according to a recent filing with the SEC. Based on a closing price of US$70.24, that additional investment was worth about US$27 million, “peanuts”.

Update 18/5/10

According to a Reuters report, it has also recently bot C$500 million in Inmet Mining and a peanutty US$50 million in Platmin over the past two months.

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Temasek: MM Lee being ignored?

In GIC, Temasek on 05/04/2010 at 6:04 am

Bit strange this. Last week, two mining deals involving Temasek were annced*.

Strange because MM Lee said several years back that GIC would not invest in mining entures, because he didn’t understand mining. OK I know he is chairman of GIC but has no post in Temasek but remember Deng Xiao Ping had no official post in the CCP or government when many of the reforms were carried out.

So is Temasek ignoring MM’s sagacity at its, and our peril? Remember a few yrs back, he said SIA shld divest itself of SIA Engr. SIA told the world that SIA Engr and SATS were core to its strategy. Last yr, it divested its stake in SATS via a dividend-in-specie.

Things can go badly wrong, when MM’s sagacity is ignored. Juz like when Temasek divested itself of its BoA stake just as market was turning. Remember MM had defended Temasek’s purchase of Merrill Lynch as one for 30 years. Who was the wiser? MM or the pros at Temasek?

Anyway, don’t the instances where MM is ignored by Temasek and its TLCs show the lie that Dr Chee, his SDP and their local new media and foreign media allies are propogating: that MM is still the puppet master and that the PM and his cabinet his toys.

If Temasek and TLCs don’t listen to him, why shld the cabinet? Why indeed shld anyone?

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– It will invest US$100 million in Platmin, a South Africa-based platinum miner. This will be in the form of convertible debt in the company. Temasek can convert all the debt into common shares at US$1.215 or about S$1.70 a piece when it matures on December 31 this year. It will then hold less than 20 percent of shares in Platmin.

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– Temasek will buy about US$490 million ($685 million) of subscription receipts from Inmet Mining.The Toronto-based diversified miner said Temasek’s Ellington Investments unit will buy some 9.2 million subscription receipts, which will each be bought at about C$54 ($75). Proceeds will be held in escrow pending exchange of the receipts for Inmet common shares. The receipts will be exchanged for the 9.2 million shares, representing a 14.16 per cent stake in Inmet on a non-diluted basis. Inmet will use the money from the deal to develop the Cobre Panama copper project and for general corporate purposes.

Time to load up on oil-connected stocks? II

In Energy, Temasek on 09/12/2009 at 1:59 pm

A follow-up to comment on Temask selling its oil and gas E&P, Orchard, at the wrong time.  

“Oil prices have fallen for the fifth day in a row, weighed down by a stronger US dollar and amid concerns over demand.

‘US crude oil for January delivery fell $1.31 to settle at $72.62 a barrel.

‘In London, Brent crude fell $1.24, settling at $75.19.” — BBC Online report. $=US$

Remember as the price of oil falls, the more the financial pressure on smaller E&P outfits. The slowdown in bank lending doesn’t help their finances. They will be under pressure to sell stakes in their properties.

Time to load up on oil-connected stocks?

In Energy, Temasek on 09/12/2009 at 5:56 am

For those who believe that Temasek always gets things wrong (buying into and selling out of Barclays, Merrill Lynch/ BoA; buying into Shin, ABC Learning, Global Crossing), then Temasek’s sale of its oil and gas exploration and production company, Orchard, is a sign to load up on oil-related stocks.

It got its timing into E&P wrong, creating Orchard just as world oil prices started their climb towards a record US$147 in July last year. High oil prices  meant it was more expensive to buy into E&P assets then. But one would have thought that the fail in oil prices combined with the credit crisis should have meant opportunities for Orchard.  Smaller oil amd gas E&P companies needed funding.Apparently,  Orchard did nothing because it was sold to listed RH Petrogas for “peanuts”:  S$351,000-$371,000.

One can reasonably wonder if MM’s thoughts affected Orchard’s plans. MM Lee said (at about the same time as Orchard was created) GIC would not invest in mining ventures, because he didn’t understand mining. What is oil and gas E&P except a form of mining?

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