Iron Ore Holdings Weaning Out From Iron Ore Sector?
Ironic that for its name, Iron Ore Holdings seem to be more interested acquiring coking coal related assets than those in the iron ore business.
A report by Deal Journal Australia revealed the Perth-based company is currently on the lookout for possible acquisitions, preferably in manganese, iron sands and coking coal assets.
"We will be braver looking forward by venturing outside iron ore," said Alwyn Vorster, Iron Ore Holdings' managing director.
Although it has not zeroed in yet on a specific company target, those types of projects will be on the company's radar in the next 12 months, Mr Vorster said.
By selling its iron ore projects in the past 10 months to bigger miners such as Rio Tinto and Fortescue Metals Group, Iron Ore Holdings was able to collect A$99 million (US$105 million), thus enabling it to target its "niche" acquisition opportunities, Deal Journal Australia reported.
And with its A$110 million in the bank, the more Iron Ore Holdings is equipped to discuss with smaller miners that have promising projects but don't have the cash to develop them.
Iron Ore Holdings is specifically looking at deals ranging between A$10 million to A$20 million worth, Mr Vorster said, noting the company still needs to retain some of the cash to fund the commercialisation of its remaining three iron ore projects, the Iron Valley, Bungaroo South and Maitland River Projects.
Iron Ore Holdings is 53 per cent owned by media billionaire Kerry Stokes, who chairs Seven West Media and Seven Group Holdings.