Ex-Glencore, Lundin execs launch Moranda Metals

Two former executives from Glencore (LON: GLEN) and Lundin Gold (TSX: LUG) have launched Moranda Metals, a private mining shell company focused on acquiring gold, silver, and copper assets across the Americas.

The Vancouver, Canada-based venture seeks to capitalize on an estimated $15 billion in available capital held by specialist private equity firms, according to co-founder and chief executive officer Christopher Kololian, who was Lundin Gold CFO until August 2024.

“Here we are sitting with high commodity prices and, at the same time, all-time high public market investor apathy towards the mining sector,” Kololian told Reuters. “And then we see there’s approximately, if not over, $15 billion of dry powder, so readily available capital today.”

The estimated figure for potential investment includes funds held by mining-focused private equity firms and other specialized mining financing companies, Kololian said.

The mining industry has faced years of under-investment, resulting in supply shortages, even as demand for critical minerals continues to rise due to the global energy transition, Kololian noted. This has created a unique market dynamic where commodity prices remain high, but investor interest in public mining companies has stagnated.

‘Generational opportunity’

Matthew Rowlinson, co-founder and chair, said there was a “generational opportunity” in the market for a vehicle like Moranda Metals.

The former head of copper business development at Glencore noted the company’s expertise ranges from development projects with a defined resource to producing assets with “meaningful” growth potential.

The company is targeting assets of strategic scale that have the potential to generate sustainable operating margins across multiple commodity cycles.

The mining sector has seen a wave of mergers and acquisitions in recent years, driven in part by strong commodity prices and the need for investing in new projects. 

Moranda Metals plans to target companies with enterprise values ranging from $200 million to $500 million. The objective is to position itself as a strategic partner for firms looking to divest non-core assets or seeking fresh capital for restructuring and rebranding efforts.

(With files from Reuters)