Elliott Investment Management is in the final stages of preparation to establish Hyperion, a new entity endowed with an investment fund of mining assets in excess of US$1 billion.
The objective of this initiative is to channel resources into metal mining assets globally, with a particular focus on the energy transition and capturing the opportunities presented by the current low valuations in the mining sector.
Elliott strategy for mining assets
As part of its strategy, ElliottElliott, known for its investment activism in the United States, plans to allocate this significant capital to mining operations, with a special focus on those mines that have not received optimal financing. It also contemplates the execution of acquisitions of listed companies or the purchase of significant stakes in mining conglomerates.
Hyperion will be led by Sandeep Biswas, who previously served as CEO of Newcrest Mining, a leading gold mining company. His vision is“focused on investing in a diversified range of metals, including base metals, precious metals and those crucial to the energy transition,” Biswas emphasized.
New investment and development opportunities in mining
Elliott anticipates covering most of the investment in mining assets with its own resources. However, it is open to the possibility of seeking co-investors if larger, long-term acquisition opportunities arise.
The company’s investment strategy comes at an opportune time to acquire mining shares at reduced prices. These stocks have depreciated in recent months, due to the fall in the prices of metals such as lithiumand nickel.
Finally, demand for key metals such as copper is expected to increase in the coming years, driven by a market that has recently doubled in size. This movement has been fueled by the growth and adoption of new electric vehicle models and renewable energy installations around the world.
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Source: Financial Times
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