asia's mining m&a reignities sector interest

DJ Asia's Mining M&A Reignities Sector Interest - UBS -- Market
Talk PNA.AX PNAJF.PK

2357 GMT (Dow Jones) Asian companies appear to be taking a long-term view on
commodity prices, suggests UBS. Over the past year there have been six
significant Asian-led M&A deals, including the recent offer for PanAust (PNA.AU)
from Guangdong Rising Assets Management that values the Laos-focused copper and
gold miner at 1.46 billion Australian dollars (US$1.37 billion). UBS analysts say
these deals show Asia is willing to bet on marginal or unloved assets. Their
advice to investors is to look again at the exploration and development potential
within resources companies, rather than hunt only for companies with rising free
cash flow. Although the ability of companies to generate free cashflow in a
period of weakening commodity prices is important, this is a cyclical sector, UBS
says. ([email protected]; Twitter: @RobbMStewart)