Anglo American Sells Two Copper Mines for $300 Million

Reuters reported that Anglo American (LSE:AAL) has sold two of its copper mines in Chile to Audley Capital, an investment firm in which Orion Mine Finance is a principal co-investor. The sale comes admidst a global commodity price slump. Morgan Stanley analysts said in a note that “the fact that Anglo American got another transaction done is a positive sign.”
As quoted in the publication:

Following a review last year Anglo American said it would divest assets that did not meet its return criteria. The investment by Audley Capital was led by John Mackenzie, a former chief executive of Anglo’s copper business.
The potential follow-up payments are contingent on the copper price and also on whether the new investors decide to extend the sulphide life of the Mantoverde mine.
Banking sources had initially touted the mines as having a price tag of up to $1 billion. But as the copper price slid sources told Reuters that they could be worth less than $500 million (£319 million), despite attracting interest from Glencore (GLEN.L) and X2, the investment vehicle led by former Xstrata CEO Mick Davis.

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