“FinnAust Mining to potentially gain from $1.7bn Tronox deal with Cristal” says SP Angel

SP Angel said this morning “FinnAust Mining LON:FAM  to potentially gain from $1.7bn Tronox deal with Cristal. Tronox has agreed to buy TiO2 business off Cristal for $1.7bn in cash plus stock to create world’s largest TiO2 pigment producer

  • The combination of the two groups suggests a more positive view of the pigment market with global growth continuing to drive demand
  • The two groups will have total capacity of 1.3mtpa representing around 15% of global capacity and taking over the number one spot in terms of production
  • Cristal have a TiO2 smelter in Japan which we understand is not yet included in the deal and which is said to have had a troublesome and long commissioning period with new technology being utilised.  It is possible that Tronox may not take up this facility plant till they are happy with the performance of the plant and its technology.  If the Japan plant is able to ramp up production more quickly then it may need to find ilmenite supply from new sources.
  • FinnAust’s Pitiffuk project has potentially the highest grade ilmenite in the world and is keen to start dredging this high grade material for export to pigment producers in North America and in China.  We expect to see a maiden JORC resource from FinnAust’s resource consultants relatively soon.”

 

 

DISCLAIMER

This note has been issued by SP Angel Corporate Finance LLP (“SP Angel”) in order to promote its investment services.

This information is a marketing communication for the purpose of the European Markets in Financial Instruments Directive (MiFID) and FCA’s Rules. It has not been prepared in accordance with the legal requirements designed to promote the independence or objectivity of investment research.

This document is not based upon detailed analysis by SP Angel of any market; issuer or security named herein and does not constitute a formal research recommendation, either expressly or otherwise.

The value of investments contained herein may go up or down. Where investment is made in currencies other than the base currency of the investment, movements in exchange rates will have an effect on the value, either favourable or unfavourable. Securities issued in emerging markets are typically subject to greater volatility and risk of loss.

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It is not investment advice and does not take into account the investment objectives and policies, financial position or portfolio composition of any recipient. This document should not to be relied upon as authoritative or taken in substitution for the exercise of you own commercial judgment. SP Angel is not responsible for any errors, omissions or for the results obtained from the use of the information in this document.

This document has been prepared on the basis of economic data, trading patterns, actual market news and events, and is only valid on the date of publication. SP Angel does not make any guarantee, representation or warranty, (either expressly or implied), as to the factual accuracy, completeness, or sufficiency of information contained herein. This document has been prepared by the author based upon information sources believed to be reliable and prepared in good faith.

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SP Angel Corporate Finance LLP is a company registered in England and Wales with company number OC317049 and whose registered office address is Prince Frederick House, 35-39 Maddox Street, London W1S 2PP.  SP Angel Corporate Finance LLP  is authorised and regulated by the Financial Conduct Authority whose address is 25, The North Colonnade, Canary Wharf, London E14 5HS and is a Member of the London Stock Exchange plc.

 

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