Autlan Looks to Buy

Minera Autlan, the Mexican Manganese miner, is on the lookout for acquisition targets, say company executives. While declining to comment specifically on the strategy for non-organic growth, an Autlan official confirms what he said in September following the company’s decision not to sell itself in an auction to global mining companies – that Autlan would rather be a buyer than a seller. “We’re not closed to new M&A opportunities,” says the executive. “Given the strong decrease in the valuations of companies in the mining industry, Autlan is considering some acquisitions,” says Banif-Ixe, in a late October report. “Targets would include not only manganese ferroalloy producers, but also some other ferroalloy assets. Additionally, it is analyzing whether to buy a mining company or a smelter/refining facility,” adds the shop, noting the company is considering raising around MXP3.5bn for big ticket capex. If that were raised in the debt market, it would imply a net debt to Ebitda of 1.0x, says Banif-Ixe. An Autlan executive declines to comment on specifics, saying funds could be raised in either debt or equity markets, but that today’s market is not conducive to new issues.