Market uncertainty and volatile commodity prices led to a slowdown in M&A activity from January to June 2013. While 2012 was considered a slow year for mining M&A, following a very busy 2011, this year is proving to be even tougher for deal making. With 649 deals in the first six months, deal volume is down by 31% from last year. The total value of deals also dropped significantly - down 74% from last year. So, as we titled our mid-year mining deals report, deals are in the dumps!
Welcome everyone, we will begin shortly.
Welcome everyone! Joining Stephen and me for this session is Madison Pearlstein from our Corporate Finance group. She's done much of our research behind our mining deals reports. Ready for your questions!
We had Gareth Turner from Apollo speaking at a mining event we hosted ealier this month. Apollo, Carlyle, KKR, Blackstone are all seriously looking at the mining sector.
Good question - we saw a lot more writedowns with the Q2 results. While writedowns don'f affect cash, I think they serve as a very good reminder for companies to be careful when considering valuations on deals in the sector.
We have a number of people from mining companies participating today. Question for you: Have your M&A plans been changing in 2013?
Thanks for your participation, everyone! Signing off!
We have time for one more question or comment.
Thanks everyone for your participation. Look forward to our next discussion and more great questions!