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Should Augusta Resource Corporation Welcome the HudBay Takeover Bid?

Benjamin discusses HudBay Minerals Inc.'s (HBM) unsolicited takeover bid of Augusta Resource Corporation (AZC) and their Rosemont Copper project. Hudbay should know everything about this
  • 1 min Read

By Benjamin Cox

Managing Director of Oreninc Prior to founding Oreninc, Mr. Cox served as a senior analyst at the D.E. Shaw Group and as a consultant with the GLG Group, where he worked directly with 15 Wall Street teams in the mining deal space. Currently, he holds the position of Chief Executive Officer of Roche Bay plc, an iron ore mining company with leases in Nunavut, Canada. Mr. Cox is also the Chief Executive Officer and a Director of Aston Bay Holdings Ltd. (TSX-V:BAY), a copper and zinc company with properties in Nunavut, Canada. Mr. Cox has researched and developed business, financial, and shipping models for every major global iron ore project. He is also an expert on mining industry market dynamics and metals, with a focus on raw materials including base metals, iron ore, platinum group metals, and industrial materials such as potash and lithium. Mr. Cox holds a B.S. from Brandeis University and an M.B.A. in Finance from Portland State University.
Managing Director of Oreninc Prior to founding Oreninc, Mr. Cox served as a senior analyst at the D.E. Shaw Group and as a consultant with the GLG Group, where he worked directly with 15 Wall Street teams in the mining deal space. Currently, he holds the position of Chief Executive Officer of Roche Bay plc, an iron ore mining company with leases in Nunavut, Canada. Mr. Cox is also the Chief Executive Officer and a Director of Aston Bay Holdings Ltd. (TSX-V:BAY), a copper and zinc company with properties in Nunavut, Canada. Mr. Cox has researched and developed business, financial, and shipping models for every major global iron ore project. He is also an expert on mining industry market dynamics and metals, with a focus on raw materials including base metals, iron ore, platinum group metals, and industrial materials such as potash and lithium. Mr. Cox holds a B.S. from Brandeis University and an M.B.A. in Finance from Portland State University.

Benjamin discusses HudBay Minerals Inc.'s (HBM) unsolicited takeover bid of Augusta Resource Corporation (AZC) and their Rosemont Copper project. Hudbay should know everything about this project before they make the deal, but their purchase of Skye Resources in 2008 puts this into question. That being said, the project is more likely to work with a partner like HudBay, and HudBay's interest makes sense due to the fact that there is not much else out there to develop. Benjamin discusses other possible bidders, including First Quantum Minerals Ltd. (FQVLF) , Teck Resources Limited (TCK) , Antofagasta plc ($ANFGY), Freeport-McMoran Copper & Gold (FCX) and others, along with those who won't bid, such as BHP Billiton (BHP) , Rio Tinto Group (RIO) , Vale (VALE) , and any capstone size companies. Benjamin concludes with how Augusta's management should welcome this offer and accept it as a friendly takeover, instead of trying to squeeze an extra 20% that is likely not there.

 

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