Agreed that Zijin definitely want this and want to get things moving forward. These statements from zijin chairman are very interesting and are very telling on why they are here, let's XAM SP can start moving, so they can "overpay" becaurlse tihht now it is a steal:
"But opportunities for Zijin will still come, he said, even if they emerge from locations where large, blue-chip Western miners still fear to tread.
“In order to have better options, we go to places with the richest resources in the world, even in places with relatively low development levels, or to places that many international mining companies consider problematic,” Chen said. “This is our differentiation.”
One such risk was a 2015 gamble on Canadian maverick Robert Friedland and his Kamoa project. Then, most of the industry was in debt and this was at best a promising project, tucked away in a remote corner of the Democratic Republic of Congo.
Now it’s one of the world’s biggest. Zijin bought into the mine and took a near-10% stake in Friedland’s Ivanhoe Mines Ltd, later increased. Today, Zijin and Ivanhoe both have a share in the operation of just under 40%.
“He’s been the high bidder for the best assets,” Friedland told Bloomberg. “And that is exactly Warren Buffett’s motto. Warren Buffett said, when I look back at my career, I always made the most money overpaying for the best assets.”
“Our biggest regret in terms of M&A is that we didn’t manage to buy all of Ivanhoe at that time,” Chen said. “Robert was not willing.”
Zijin’s copper surge is well timed. The prospect of surging demand, as the energy transition takes hold, has already pushed the red metal to a record earlier this year.
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