Global consumption of metals (including copper, nickel, lithium, cobalt, rare earths and others), is characterized by a growing imbalance between supply and demand, leading many to predict a new supercycle in commodities. Supply is constrained because of multi-year lead times required to bring a mine into production, combined with reduced levels of investment in new mines globally over the past decade. It is further constrained by the urgent need amongst western consumer countries and industries to diversify supply away from Russian and Chinese sources and realise greater resource security.
The global energy transition is expected to increase long-term consumption of new economy metals – these are crucial ingredients in clean-energy transport technologies, as well as in wind, solar and nuclear power. Additional demand drivers for metals as a whole include the global revival of commerce post-pandemic; global infrastructure spending initiatives; and significant new increases in defence-industry spending.
The mining universe in new economy metals is geographically-diversified, and many target assets are privately-held and with relatively limited funding options, especially in an environment of tightening financial conditions. ACG’s team has an outstanding global network in the mining industry that will enable it to quickly identify a significant number of potential acquisition targets, both in its first deal and beyond.
ACG is well-suited to provide targets with funding and development opportunities, the benefit of ACG management’s strategic and operational expertise, and the application of rigorous ESG standards in management.