Elliott Management's Billion-Dollar Bet: Activist Investor Seeks Global Mining Assets Through New Venture
benzinga.com
by Bibhu Pattnaik, Benzinga Staff Writer
February 25, 2024 2:09 PM | 2 min read
Zinger Key Points- Elliott Management launches Hyperion to acquire mining assets worth at least $1 billion.
- Venture targets essential metals for EV production, led by industry veteran Sandeep Biswas.
In a strategic move to capitalize on the current market conditions, Elliott Management is launching a new venture, Hyperion, to acquire global mining assets valued at a minimum of $1 billion.
According to sources familiar with the matter, the initiative seeks to leverage the low valuations of companies within the sector.
Hyperion, under the leadership of Sandeep Biswas, former CEO of Newcrest Mining, is set to explore opportunities across a broad spectrum of assets, including those essential for electric vehicle production and renewable energy.
This comes as metal prices are expected to surge due to increasing demand and limited supply, reported the Financial Times.
The venture's strategy reflects Biswas' successful tenure at Newcrest, where he boosted returns through strategic acquisitions and revitalized underperforming assets.
Also Read: Activist Investor Elliott Management Names Candidates For Salesforce Board: What You Need To Know
With $65 billion under management, Elliott is not only focusing on single mines but is also open to more complex deals, including buyouts of public companies and partnerships for more significant transactions.
This bold step into the mining sector marks a significant shift for Elliott, especially following its recent legal battle over nickel trades with the London Metal Exchange.
Unlike its previous commodity trading ventures, Elliott plans to operate the acquired company and its assets directly, indicating a long-term commitment to the mining industry.
Notable companies in the mining sector that surpass the $1 billion threshold include BHP Group Ltd.
BHP-2.48%
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, Rio Tinto Group
RTNTF
, and Vale S.A.
VALE-2.30%
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.
Additionally, ETFs like the VanEck Vectors Gold Miners ETF
GDX
and the Global X Lithium & Battery Tech ETF
LIT
offer investors exposure to a range of assets within the mining and electric vehicle supply chain.
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