Finally some upward movement on the share price with an increase in volume.
On SDL’s second biggest trading day (volume) for twelve months, it is interesting to gain an insight into the mindset of a possible suitor.
It a interview with the WSJ a few weeks ago, Ivan Glasenberg left no doubt that the newly merged Glencore Xstrata, will retain all of the old Glencore's hard-charging DNA.
“If it does buy something, Mr. Glasenberg said, the target would be determined by value rather that the price of the metal being produced. "Let's say you're bearish on nickel," he said. "You can buy a nickel asset cheap as hell, because people are so pessimistic on it, and then you put in your forward curve, your nickel price, it still gives you a 15 to 20% return, we'll buy that."
“Mr. Glasenberg said that in analyzing where to buy mines, he doesn't favor wealthier, more established mining locales like Australia and Canada over emerging economies like the Democratic Republic of Congo or Colombia. "They may be more risky countries, but they're giving me big returns," he said. "These big monster assets [such as those in Australia and Brazil] are not giving me the big returns because they've had big cost overruns."
"One big reason the company prefers to invest in so-called frontier nations is that, in a place like the DRC, "we're more important to the country, that we believe the country has less chance of hurting us that in some of the bigger countries where we're not that important," he said. Australia imposing a mining tax in 2010 is akin to an "expropriation," he said, a risk as bad as anything that might happen in the Congo.”
