The Information : The Electric: Do Western Car and Battery Companies Have a Sodi

The Electric: Do Western Car and Battery Companies Have a Sodium Blind Spot?

For all the talk of lithium as the driver behind the nascent electric vehicle industry, a second, much less-discussed battery metal has been attracting recent attention. It is sodium, a cheap ingredient of ordinary salt. Long derided as lithium’s poorer cousin in terms of battery value, it is surprisingly showing better performance in some electric vehicles. Since sodium is found nearly everywhere, leading Chinese battery makers and some Western analysts are now calling it a potential replacement for increasingly scarce lithium.

Sodium may be yet another instance in which Western companies are waiting too long to dive into a big shift in batteries. So far, Western, South Korean and Japanese companies have largely ignored sodium, with some industry veterans dismissing it as part of an elaborate plot by China to talk down lithium prices and profit from lower costs. Meanwhile, as many as two dozen Chinese battery makers have announced plans to develop such batteries for stationary storage and later EVs. Their aggressive moves mirror action by Chinese companies across the battery industry the last dozen years. They have been grabbing control of everything from mines to battery manufacturing, a strategy that has put them well ahead of their Western rivals.

Driving interest in sodium is a looming shortage of lithium. Supplies of the latter metal are forecast to fall severely short of demand this decade, limiting how many EVs can be produced. Sodium accounts for 2.3% of the world’s crust, making it more than a thousand times as abundant as lithium. The more plentiful supply also makes it cheaper: Estimates are that sodium-ion batteries can be produced for under $100 per kilowatt-hour, 33% less than current lithium-ion batteries, and when produced at volume, the cost could drop by more than half, to $40/kWh, experts say.

Skeptics, though, point out that while sodium is theoretically cheaper as a battery metal, a number of other materials are required to make it work in an actual battery pack, raising its ultimate cost considerably. And while sodium may relieve one supply bottleneck—that of lithium—the use of sodium could exacerbate shortages of another battery metal: nickel, which sodium-ion electrodes may require.

Some Western industry hands suspect that China is talking up sodium ion at least in part to keep downward pressure on lithium prices, which are down a whopping 63% from a November peak. The stock prices of lithium mining companies have fallen in tandem. Lithium industry analyst Joe Lowry has suggested that the specter of sodium ion’s arrival eating up part of lithium’s market has spooked traders.

But lithium’s price fall is likely related more to the law of supply and demand: Chinese battery companies are drawing down lithium stockpiles accumulated toward the end of 2022, and they had relatively soft demand for batteries in the first two months of this year. Thus they bought less lithium than usual, creating a surplus.

An Idea That Started 20,000 Leagues Under the Seas

The idea for sodium batteries goes back a century and a half. In 1870, Captain Nemo powered his submarine with a sodium battery in Jules Verne’s “Twenty Thousand Leagues Under the Seas.” Nine decades later, researchers at Ford developed a battery that combined sodium and sulfur, but it went nowhere in terms of use in a car because it needed to be heated to a dangerous 350 degrees Celsius (660 degrees Fahrenheit). Work on sodium batteries continued through the 1970s and the early 1980s, but events overtook the chemistry’s promise: Oxford researcher John Goodenough invented a way for lithium to work in a battery, and Sony commercialized it for use in the first handheld video cameras.

Sodium is inferior to lithium in multiple ways: It has half the energy density, so the driving range of EVs equipped with a sodium-ion battery is relatively short—there are no 300-mile sodium-ion batteries, for example. Also, sodium atoms are much larger than lithium ones, weigh 3 times as much and have trouble finding a way in and out of the most popular EV cathodes and cathodes. That means sodium-ion batteries require new anodes and cathodes.

In the summer of 2021, China’s Contemporary Amperex Technologies Ltd., the world’s largest battery manufacturer, announced that it had produced a sodium-ion battery with surprisingly high performance. CEO Robin Zeng said the battery delivered energy density of 160 watt-hours per kilogram in an electric vehicle battery, approaching the performance of lithium-iron-phosphate, a commercial cathode used widely today for low- and mid-range EVs. CATL made the cathode from Prussian white, a material combining iron and manganese, and the anode from porous hard carbon that allowed the sodium ions to move freely, and Zeng said the resulting battery could charge to 80% of its capacity in 15 minutes.

He said CATL would first offer the battery to electric power stations for use during peak electricity demand. He said a later EV battery would be a hybrid combining sodium and lithium. Executives of Western companies and outside researchers expressed skepticism, especially about CATL’s claim that it would next produce a sodium-ion cell delivering 200 Wh/kg of energy density, equaling the performance of the current best LFP and sufficient to power an EV for 250 or more miles. Western executives and analysts continue to wonder how CATL manages to get sodium ion—a chemistry thought to be good for 100-mile cars and little more than that—to deliver 2.5 times the distance.

As is the case with much of what happens in Chinese technology, CATL’s work aligned with official government policy—China’s five-year plan called for sodium-ion research. But over the subsequent 18 months, lithium prices climbed as much as 14-fold over multiyear lows hit in 2020. One Chinese company after another, including a couple that had Western partners, announced that they, too, were getting into sodium ion.

The plans include the following:

VW-backed JAC Motors in February unveiled the Sehol E10X, an EV powered by a sodium-ion battery produced by HiNa Battery Technology Co. that in tests delivered 120 Wh/kg at the pack level. In December, HiNa also started up the world’s first large sodium-ion production line, a 1 GWh factory in Fuyang, China.
Renault-backed Jiangling Motors, which has said that this summer it will release the EV3, a short-range EV, is using a sodium-ion battery it tested from Farasis Energy, a Ganzhou, China, company.
Huizhou, China-based battery developer EVE Energy has unveiled a cylindrical sodium-ion battery.
Changzhou, China-based battery developer SVolt has said it is working on a sodium-ion battery that currently achieves energy density of 100 Wh/kg.
A report in November said battery and EV manufacturer BYD, China’s leading EV maker, planned a sodium-ion battery for its electric Seagull, which is to be released later this year. A second report said the car would cost from $9,000 to $11,000. BYD denied the reports.

In all, Benchmark Mineral Intelligence said it has identified 28 sodium-ion gigafactories planned by 2030 with a capacity of 107 GWh, with all but four small ones based in China. In a report last week, Matt Fernley, editor of Battery Materials Review, forecast that the sodium-ion factories will produce even more batteries—440 GWh of production capacity.

Kevin Shang, an analyst at Wood Mackenzie, an energy research firm, said the attention to sodium is a product of the surge of lithium prices since 2020. Few of the Chinese companies that have announced new sodium-ion products are actually working on them, Shang told me. “Some people are just trying to follow the fashion and aren’t really serious about it,” he said.

How to Make Sodium Work in an EV

Some Western foreign policy analysts have cited sodium ion as an example of China continuing to march out ahead of the West. No major non-Chinese auto or battery maker has announced a product or even work on a sodium-ion battery, and the presumption in the industry is that sodium-ion EVs will arrive at large scale in the West only in the 2030s.

Therein lies the danger—is the West again setting itself up to again be outmaneuvered on the battlefield of batteries and eclipsed by the Chinese? In other words, does the West have a blind spot when it comes to sodium ion, in the same way that it ignored LFP—another low-tech chemistry Western companies derided as unworthy of their attention—even as Chinese companies hammered it into one of the best commercial cathodes? Venkat Viswanathan, an engineering professor at Carnegie Mellon University, said the answer is yes. “Sodium isn’t seen as an attractive research area,” he told me. “The West tries to do technology plays, [but] sodium ion is an inferior technology play. You hardly have any sodium-ion startups.”

There are lessons for sodium in next-generation lithium-ion batteries. The stretch play for lithium-ion developers is to use pure lithium metal foil, a material that can cause an explosion but that if tamed could increase driving range by 50%. So it could be with sodium ion, too: In January, Advanced Research Projects Agency—Energy, or Arpa-E, a Department of Energy agency that incubates pre-commercial energy technologies, awarded a three-year, $3.2 million grant to 24M Technologies, a Cambridge, Mass., battery manufacturer, to develop a sodium-metal battery.

Viswanathan, who is part of the 24M team, said the idea is to use foil made of pure sodium metal in a battery rather than crumbs of sodium ions as is currently the case. This approach would produce a battery equivalent to current top-of-the-line EV lithium-ion batteries, Viswanathan said. But, like lithium metal, sodium metal produces spiky growths called dendrites that can cause shorts and explosions. Maria Forsyth, a battery researcher at Australia’s Deakin University who works on sodium metal, told me it is not nearly ready for commercialization in EV batteries. There is “too much uncertainty and safety issues to consider,” she said.

Either way, the deployment of sodium-ion or more-advanced sodium-metal batteries promises to take up some of the slack in low-end to medium-range EVs and energy storage, relieving the constraint on the EV supply. For three decades, the West has made repeated errors of judgment in battery development, allowing first Japan, then South Korea and finally China to take control of commercialization. With its chronic blind spot, the West is so far making the same mistake.

>>> What to look at this Week-End - 7, 8, 9, 10 & the 11th of Ap

Asian equities advanced with European stock futures as positive momentum picked up on Tuesday following a late recovery in post-holiday trading on Wall Street. The dollar edged down after three days of gains, Treasury yields ticked lower and Bitcoin punched above $30,000 for the first time since June as it rallied more than 80% since the start of the year. Japanese shares climbed following the dovish stance of the new Bank of Japan governor, Kazuo Ueda, who signaled that any significant changes to monetary policy may be unlikely for now. The yen trimmed some of its loss of more than 1% from Monday when Ueda spoke.
South Korea’s Kospi moved higher as the central bank held interest rates unchanged while the Australian market showed strong gains after the Easter long weekend. Futures for the Euro Stoxx 50 jumped about 0.7% and contracts for the S&P 500 rose around 0.1%. Gains in Hong Kong and Shanghai faded amid focus on Chinese inflation data. Consumer prices were softer than expectations and deflation in factory-gate prices matched estimates, likely keeping the stimulus option open for policymakers.  Markets are pricing for a strong likelihood the Federal Reserve will hike interest rates by a quarter-point May 3 to contain inflation. That’s in contrast to Asian central banks that are starting to pause. It’s also a stark turnaround from March 22 when the Fed set its policy band at 4.75%-5% and the odds of a May rate hike almost vanished amid the turmoil in the banking sector.   The yield on policy-sensitive two-year Treasuries eased back below 4% Tuesday after climbing Monday as traders positioned for the Fed to hike. In the US Monday, the S&P 500 eked out a gain in the final minutes of the session after spending most of the day in the red. The Nasdaq 100 pared losses into the close, ending marginally lower as an Apple Inc. report that personal computer shipments fell sharply weighed on the tech-heavy benchmark.  Investors are now awaiting Wednesday’s report on consumer prices, which is expected to show a 0.4% monthly increase in the core consumer price index, for more assurance on the Fed’s rate path. Meanwhile, Wells Fargo & Co., JPMorgan Chase & Co. and Citigroup Inc. will kick off reporting for the banking sector Friday, offering insights on the health of the financial system. In the US Monday, the S&P 500 eked out a gain in the final minutes of the session after spending most of the day in the red. The Nasdaq 100 pared losses into the close, ending marginally lower as an Apple Inc. report that personal computer shipments fell sharply weighed on the tech-heavy benchmark.  Investors are now awaiting Wednesday’s report on consumer prices, which is expected to show a 0.4% monthly increase in the core consumer price index, for more assurance on the Fed’s rate path. Meanwhile, Wells Fargo & Co., JPMorgan Chase & Co. and Citigroup Inc. will kick off reporting for the banking sector Friday, offering insights on the health of the financial system. oil trimmed some of a recent loss, with West Texas Intermediate trading back around $80 a barrel. Gold was slightly higher and near $2,000 an ounce. US After Hours Quiet session; BKD +10.7% up on adjusted EBITDA guidance; PSMT +4.4% up on earnings; TLRY -4.2% slipping on FebQ sales miss, HEXO purchase.

Nikkei +1,29% HAng Seng +0,18% CSI -0,35% Shanghai -0,39% Shenzen -0,23%

Eur$ 1,0888 CNH 6,8882 CNY 6,8840 JPY 133,29 GBP 1,2407 CHF 0,9075 RUB 81,6540 TRY 19,2747 WTI$ 80,42 +0,70% Gold 2000 BTC 30,030 +3% ETH 1,920 +1,75%

S&P +0,13% Nasdaq +0,05% EuroStoxx +0,54% FTSE +0,65% Dax +0,57% SMI +0,36%

Macro :
- OPEC+ Shock Revives Oil Bulls Even as Demand Warnings Flash
- China AI Stocks Sink on Call for State to Stem Bubble Risk
- Oil Fund Outflows May Point to Demand Concerns After OPEC+ Cut
- OIL MAY FLIRT WITH $60S BUT NOT FOR LONG, SAYS CITI'S MORSE
- M&A Drought in Europe Forces Merger Arb Fund to Take More Risks

Keep an eye on :
- AIR FP : Airbus Helicopters and China’s GDAT Sign for 50 H160 Helicopters
- BABA US : Alibaba Enters ChatGPT Fray With AI in Speaker, Slack-Like App
- ALO FP : Alstom Wins $401M Operations Contract From Maryland Transit
- BATS LN : BAT Invests $10 Million in Venture for CBD Brain Drug
- BNP FP : BNP Raised Bonus Pool for Top Investment Bankers by 14% in 2022
- BORR NO : Borr Drilling Gets $123m Contract for Jack-Up Rig Hild
- CSGN SW : Swiss Government Set for Grilling Over UBS-Credit Suisse Deal
- ENEL IM : Enel Sells Peru Assets to China’s CSGI for About $2.9 Billion
- EVT GY : Evotec Reports Cyber Attack; IT Systems Shut Down Proactively
- FER SM : Spain Sends Letter to Ferrovial Questioning Dutch Move Plans
- FLTR LN : Flutter Close to Appointing John Bryant as Chairman, Sky Reports-
- FLS DC : FLSmidth Gets DKK350 Million Order for Middle East Gold Mine
- GLEN LN : Canada’s Lassonde Plans to Buy Stake in Teck Spinoff: Report
- RMS FP : Hermes Boosts Kelly Bag Output With New Normandy Facility
- IDR SM : Funds Sound Out Amber to Gain Control of Indra: El Confidencial
- IDR SM : Amber CEO Denies Plotting Indra Takeover With Investment Firms
- JPM US : JPMorgan Subpoenaed by Comer in Biden Family Probe: Politico
- LGEN LN : Legal & General and the £1.5 Trillion UK Defined-Benefit Market
- LKOH RM : Italy Takes Extra Time to Review Sale of Lukoil Refinery: FT
- EMG LN : Flows and Fundamentals Make Man Group Suspicious of Stock Rally
- NEM US : Newcrest Gets Revised Offer From Newmont of A$32.87/Shr
- NOKIA FH : Nokia Gets Contract From Zain Jordan to Supply 5G Equipment
- NOKIA FH : Huawei Blocks Nokia’s Attempt to Sell JV to Chinese Buyer
- PACEU NA : Pegasus Europe to Cease Ops; Return Capital to Investors May: FT
- PHIA NA : Philips Respironics Recalls Certain CPAP, BiPAP Machines: FDA
- REP SM : Argentina’s YPF, Spain’s Repsol to Pay $575m in Maxus Case
- RXL FP : Rexel Sales-Growth Trajectory Buoyed by Energy-Transition Focus
- SAN FP : Sanofi Withdraws, Refiles Premerger Notification for Provention
- SOBI SS : Sobi Signs Royalty Pact With Sanofi, Ends Deal With AstraZeneca
- SWON SW : SoftwareOne Proposes Adam Warby as Chairman, von Stockar Resigns
- TRE SM : Tecnicas Reunidas to Issue 24m Shares For EU150m Capital Raise
- TIT IM : Vivendi Criticizes Telecom Italia Performance, Bonuses: Il Sole
- TKA GY : Thyssenkrupp Examining ‘All Options’ for Naval Unit, FAS Reports
- TTE FP : TotalEnergies Says Donges Refinery to Resume Work
- VIV FP : Vivendi Criticizes Telecom Italia Performance, Bonuses: Il Sole
- VPK NA : Vopak to Buy 50% of Shares in Gasunie’s EemsEnergyTerminal
- WE US : WeWork Adopts Stockholder Rights Plan

>>> Europe : Brokers Upgrades & Downgrades - 7, 8, 9, 10 & the 1

>>> Up
* Accor Raised to Overweight at Morgan Stanley; PT 37 euros
* ASR Nederland Raised to Buy at Citi; PT 46.52 euros
* HelloFresh Raised to Overweight at JPMorgan; PT 27 euros
* Persimmon Raised to Equal-Weight at Barclays; PT 1,300 pence
* Smith & Nephew Raised to Overweight at Morgan Stanley
* Whirlpool Raised to Buy at Goldman; PT $160

>>> Down
* Covestro Cut at Morgan Stanley on Market Recovery Uncertainty

>>> Initiation
* Entain Rated New Neutral at Credit Suisse; PT 1,390 pence
* Flutter Rated New Outperform at Credit Suisse; PT 19,250 pence
* OKEA Rated New Buy at DNB Markets; PT 41 kroner
* Prudential Rated New Overweight at Guotai Junan Sec

>>> Call
* Accor Up to Overweight at MS on Luxury, Lifestyle Hotel Upside
* ASR Nederland Raised at Citi, at Attractive Level Post-Selloff
* AstraZeneca Raised at MS on ‘Smart Chemotherapy’ Opportunity
* Flutter Preferred Gambling Pick at Credit Suisse; Entain Neutral
* HelloFresh Double-Upgraded as Bear JPMorgan Turns More Bullish
* Smith & Nephew Raised at Morgan Stanley on Self-Help, Valuation
* Tesla Falls; Citi Sees Price Cuts Placing More Focus on Margin

WWD : Courtin Family Takes Majority Stake in Pai Skincare

Courtin Family Takes Majority Stake in Pai Skincare
Famille C Participations’ investment is to help accelerate the clean prestige skin care brand’s growth.

PARIS ­— Famille C Participations, the Courtin family’s holding company, has taken a majority stake in Pai Skincare to help step up the brand’s growth and turn it into selective distribution’s clean skin care leader.

In April 2021, Famille C purchased a minority stake in Pai, leading its $9 million Series B investment round.

Financial terms of the most recent investment were not disclosed.

“It’s time for Pai to accelerate in its country of origin, which is the U.K., and to develop in Europe,” said Prisca Courtin, chief executive officer of Famille C. She is a member of the Courtin family, which founded and owns beauty giant Groupe Clarins.
Sarah Brown established Pai Skincare, which is certified organic, vegan and cruelty-free, in London in 2007.

Courtin described Pai’s positioning as an authentic clean brand that is true and transparent in its ingredients and ingredient sourcing. She highlighted that Pai has full control of its formulas, with 98 percent of its ingredients stemming from natural origins.

“[Pai products] have the particularity of being very effective, unlike many clean products,” Courtin continued. “We said to ourselves that now is the time we must accelerate with it.”

Brown’s commitment and sincerity are also what attracted Famille C to Pai.

“That’s what we like; it is very consistent with the Groupe Clarins and Ilia, too,” said Courtin, referring to Ilia Beauty, the Los Angeles-based clean makeup brand Famille C acquired in 2022. “Sarah was a huge part of the decision-making process. She is key, and it is key that she stays by our side for the future.”

Pai has been supported by Famille C and Groupe Clarins with expertise, such as relating to retail strategy with Sephora. That is a partnership for Pai that until now has focused on the U.K. and France, and which will be key to the brand’s expansion throughout Europe. Other important retail tie-ups include John Lewis in the U.K. and Oh My Cream on the Continent, where the brand is generally a top seller.

Famille C also plans to help Pai with its digital acceleration, especially improving sales on its own e-commerce site.

Today Pai is sold in 900 doors in 30 countries, and 40 percent of its overall business is generated online.

Courtin would not discuss numbers, but industry sources estimate Pai generates about 10 million pounds, or $12.4 million, in annual retail sales.

“We are thinking about the whole supply chain and logistics,” said Courtin, explaining that Pai’s lab in London is working at full throttle today. So a next step could be growing capacity and possibly manufacturing some of the brand’s products at Groupe Clarins’ facilities.

“At Pai there are still a lot of products to develop,” said Courtin, adding that’s despite it being a brand that already meets the needs of all skin sensitivities and types.

Among Pai’s approximately 30 products, its bestseller is the Rosehip Bioregenerate face oil. One bottle of it was sold every two minutes, as of 2021.

“They have super good repurchase rates, and the idea is really to continue capitalizing on this, to continue making effective products,” Courtin said.

She lauded Pai’s innovative boosters, such as the one that’s mushroom-based and another with vegetal collagen.

Brown will begin to focus a bit more on antiaging products.

“On this we can also help her a lot with Clarins’ expertise,” said Courtin, explaining the overarching goal for Pai is “to become the leader in clean skin care in selective distribution.” That’s first to be in Europe, then abroad.

Other product categories Pai could focus on next are tinted complexion illuminators, body care, maternity-related body care and sunscreen.

“It’s very important for its clients to have SPF — but natural — protection,” Courtin said.

She initiated Famille C’s creation six years ago with the aim of primarily making beauty investments.

“We have very specific strategic filters,” said Courtin, explaining a potential target’s product formulas need to be innovative and clean, and the brand must be embodied by a charismatic founder or founders, who want to continue their adventure with Famille C.

“This is very important to us,” said Courtin, also explaining so are strong sustainable development commitments, including sourcing of quality ingredients.

Pai has amassed an impressive number of certifications, including recent B Corp. status.

“It really proves Pai’s commitment from a sustainable development point of view,” Courtin said.

Other certifications include COSMOS Organic, COSMOS Natural, Cruelty Free International and London Living Wage.

The idea within Famille C is to have brands with a similar vision, which share the same values and DNA.

“The goal of this investment company is really to create an industrial group that will support the beauty leaders of tomorrow,” Courtin said. “That’s my objective.

“We are 100 percent family-run, and think in the long term,” she continued.

So there is no rush to grow a brand. The aim is not to sell the companies either, but rather to support them over time. Famille C invests without constraint on company size, investment phase or exit horizon, sometimes taking majority or minority stakes.

Hair care remains a category of interest for the fund.

“We made a small investment in Ceremonia, which we like very much,” said Courtin, adding that the clean hair care brand rooted in Latine heritage is doing very well, and that Famille C would like to find another hair care brand to accompany it.

Also on Famille C’s radar is skin care targeting a younger or older demographic — especially premium skin care, which remains at Groupe Clarins’ core.

“We look at all the opportunities available to us,” Courtin said.

Ninety percent of Famille C’s investments are in beauty, but it has also gone farther afield, including a hotel in the South of France and a French chateau, replete with a working vineyard.

WSJ : Newmont Raises Bid for Australia’s Newcrest to $19.5 Billion

Newmont Raises Bid for Australia’s Newcrest to $19.5 Billion
Takeover would be the largest-ever M&A deal in the gold-mining industry if successful

ADELAIDE, Australia— Newmont Corp. NEM -1.84% raised its takeover offer for Newcrest Mining Ltd. NCMGY -1.11% to around $19.5 billion, as it aims to seal what would be the largest-ever M&A deal in the gold-mining industry.

Newmont’s decision to improve its all-stock offer for Newcrest, Australia’s largest-listed gold miner, comes at a time when gold prices are approaching a record high amid stress in the global banking system and heightened worries over the economic outlook.

Newmont is offering 0.400 of its own shares for each Newcrest share, Newcrest said in a regulatory filing on Tuesday. In addition, Newcrest said it is permitted to pay a special dividend of up to $1.10 a share around the time any deal completes.

Newcrest, which owns mines in Australia, Canada and Papua New Guinea, said this represented a 16% increase to an initial bid from Newmont that it had rejected. After assessing the latest proposal, Newcrest said it would open its books to Newmont to firm up a binding offer.

A spokesman for Newmont, which is based in Colorado and is the world’s top gold producer, declined to immediately comment.

Newmont’s pursuit of Newcrest illustrates how gold producers are seeking to do deals at a time when the industry is struggling to make large new discoveries of the precious metal. In 2019, Newmont acquired Canadian gold producer Goldcorp Inc. in a transaction valued at $10 billion. The same year, Newmont and rival Barrick Gold Corp. formed a joint venture in Nevada to cut costs, after an earlier offer from Barrick to buy Newmont was rejected.

Newmont previously said its business was complementary to Newcrest’s and that a combined entity could “set the standard for sustainable and responsible gold mining.”

Newmont has indicated the latest bid is its best and final price unless a rival suitor emerges, Newcrest said. Barrick Gold previously signaled it wasn’t interested in making a competing bid for the Australian gold company.

The revised offer represents an equity value of 29.4 billion Australian dollars ($19.5 billion) and an enterprise value of A$32.0 billion, Newcrest said. A deal would result in Newcrest shareholders owning about 31% of the combined company, with Newmont investors owning the rest.

An implied value of A$32.87 a share compares to Newcrest’s closing stock price of A$22.45 a share on Feb. 3, before Newmont’s interest became known. Newcrest’s stock rose by 6.2% to A$30.02 a share early in Sydney on Tuesday.

Gold miners have for years found it difficult to add to reserves in low-risk countries, with many mines running low on gold that can be accessed easily and exploration campaigns turning up few big deposits. Of the 341 major deposits discovered between 1990 and 2021, only 28 were found in the past decade, and contained only 6% of the gold discovered since 1990, according to S&P Global Market Intelligence.

Newcrest’s suite of gold-mining operations and growth projects would cement Newmont’s position as the world’s largest gold miner. Newcrest’s assets can run for 22 years before becoming depleted, well above most of its listed rivals, according to analysts at Barrenjoey, an Australian investment bank. They would also boost Newmont’s exposure to copper, an industrial metal expected to be in high demand as the world decarbonizes.

Newmont’s approach comes amid an upheaval at Newcrest, which in December said Sandeep Biswas would leave the company after eight years as chief executive. Newcrest named Chief Financial Officer Sherry Duhe as interim CEO while searching for Mr. Biswas’s successor.

FT : Dutch minister warns of waning public support for climate policies

Dutch minister warns of waning public support for climate policies
Greenhouse gas reduction measures have led to stand-off between government and farmers in the Netherlands

A senior Dutch minister has warned fellow politicians in Europe of waning public support for the region’s climate policies as showcased by a continuing stand-off between farmers and the government over greenhouse gas limits in the Netherlands.

Deputy prime minister Sigrid Kaag, who also serves as minister of finance, told the Financial Times of the increasingly difficult task her government faces rallying some parts of the electorate behind policies with intergenerational ramifications, including the need to reduce nitrogen emissions, which has led to significant disruption, clashes with police and a political upset in elections for the Dutch senate.

“We need to create that level of support and entice people, and inspire them,” said Kaag, who heads the liberal D66 party, which is one of the four parties in government. “That is not always easy because the Netherlands, ironically, is more conservative than you would think.”

The Netherlands, one of the most densely populated countries in the world, is seeking to drive down emissions of nitrogen, a potent greenhouse gas, by persuading farmers to reduce livestock herds or leave the industry. The country has the EU’s highest density of livestock, including more than 11mn pigs.

The winner of the regional elections was the upstart populist Farmer-Citizen movement, or BBB, which capitalised on anger over the government’s push to halve nitrogen emissions by 2030. The issue has become so toxic that another ruling party, the conservative Christian Democratic Appeal, now wants to renegotiate the part of the coalition agreement that relates to nitrogen targets.

Speaking in her capacity as leader of D66, Kaag said it was an “impossible question” when asked if she believed the coalition would survive the current crisis. When the renegotiations begin, she was interested in hearing an offer that led to a “credible reduction” in the level of nitrogen while allowing for a vibrant economy and permitting farmers to have a sustainable livelihood.

“We have come to a state where the Netherlands has to deal with decades of our collective inability to address the issue [of nitrogen], either because it was sensitive or it was underestimated as an issue,” she said. “It has now come home to roost.”

Kaag, whose party prominently backs the nitrogen-reduction agenda, denied her party was out of touch with the electorate.

“I would say far from it,” she said in an interview in The Hague. “I can understand fear, and I can understand the total sense of insecurity, but what we see, which is not unique to the Netherlands, is [something] a lot of liberal democracies face.”

The turbulence in The Hague comes as other parts of Europe’s green agenda have been watered down amid political tensions in other capitals. A long-planned ban on the sale of combustion engine cars in the EU from 2035 was agreed last month only after Germany and its allies won an exemption for cars using carbon-neutral e-fuels.

Kaag noted a generalised difficulty in connecting to parts of the electorate that have opted out or feel isolated and believe politics no longer serves its needs.

Established parties, she argued, “face a level of resentment, resistance, to actions that are proposed which we believe are in the interests of the country and are intergenerational, but are either poorly communicated [or] poorly understood, and come at a time of great insecurity and uncertainty”.

Part of the response involved supporting households that could not afford policies required for the green transition, including better insulation for homes or the installation of solar panels, she added. The government, she said, had a “duty of care” to those who were struggling to afford the policies involved in the transition.

But she insisted tackling nitrogen was not a matter of party politics but scientifically necessary. “It is a crisis in the Netherlands, and pretending it’s not there doesn’t bring solutions any closer.” 

FT : HPS assets near $100bn as credit funds move deeper into banks’ territory

HPS assets near $100bn as credit funds move deeper into banks’ territory
Investment manager raises $12bn for new vehicle

HPS Investment Partners has raised $12bn for a new junior credit fund, pushing the private credit firm’s assets under management to nearly $100bn as it becomes an increasingly formidable player across debt markets.

The fund immediately becomes one of the largest pools of junior credit available to private equity groups and companies, when traditional investment banks are further retrenching from speculative corners of finance and dialling back lending to riskier businesses.

Turbulence in public markets sparked by the US Federal Reserve’s decision to aggressively raise interest rates in its bid to tame inflation has many big asset managers salivating over an opportunity to step in where banks may not.

Rivals to HPS, including credit specialist Oaktree Capital, are raising billions of dollars for new private credit funds.

“Banks have severely limited their exposure to this particular area of the credit market,” said Scott Kapnick, chief executive of HPS, referring to junior credit, which ranks below more secure forms of borrowing. “They do not want to be left holding junior capital. The recent crisis with Silicon Valley Bank and the regional banks will make it even more of a focus for banks to be cautious.”

HPS was founded in 2007 as a division of Highbridge, JPMorgan Asset Management’s hedge fund unit, and was spun off in 2016. It has become one of a handful of go-to lenders offering large loans that used to primarily be the purview of traditional banks, and now routinely goes shoulder to shoulder with Apollo and Blackstone in funding large but risky takeovers.

Its new fund — known as Strategic Investment Partners V — plans to buy risky debt, including junior loans and convertible bonds, as well as preferred stock. The firm surpassed its $9.5bn fundraising target and expects the fund to eventually invest $17bn when it taps loans from Wall Street banks, a common practice for private equity and credit funds, according to people briefed on the matter.

Last week it took part in a $3.84bn debt sale tied to the buyout of software group Citrix, picking up the junior bonds at a deeply discounted price when lenders led by Goldman Sachs and Bank of America raced to cut their exposure to the takeover.

HPS has already invested more than a third of the $17bn it plans to put to work, including loans to wireless provider Consumer Cellular and Authentic Brands, the company behind Brooks Brothers and Reebok. The fund will generally make individual investments worth between $250mn and $750mn.

It is one of the largest funds ever raised to invest in junior credit, eclipsing an $11.7bn “mezzanine” fund Goldman Sachs Asset Management closed earlier this year, according to data provider Preqin. That fund expects to invest north of $15bn after it taps its own loans from Wall Street lenders.

Investors have been drawn to the relatively high returns on offer from private credit funds, with riskier loans often yielding 14 per cent or more. While that trails returns marketed by private equity funds, it has proven attractive to pension funds and endowments after a decade of rock bottom interest rates.

Scot French, a governing partner at HPS who will manage the new fund, said companies must refinance significant amounts of debt coming due in 2024 and 2025, and the new higher interest rate environment will make this more complex than in the past.

“They need to find some solution to get their capital structures amended and extended. They’ll possibly need common equity or a more bespoke piece that a firm such as HPS can offer.”

>>> US After Hours Summary: Quiet session; BKD +10.7% up on adjusted EBITDA guid

After Hours Summary: Quiet session; BKD +10.7% up on adjusted EBITDA guidance; PSMT +4.4% up on earnings; TLRY -4.2% slipping on FebQ sales miss, HEXO purchase

After Hours Gainers:

Companies trading higher in after hours in reaction to earnings/guidance: BKD +10.7% (guidance), PSMT +4.4%

Companies trading higher in after hours in reaction to news: BWXT +1.2% (awarded $428 mln contract), NGD +0.4% (reports Q1 operational results), PLTR +0.3% (discloses stake in Rubicon Technologies), RIOT +0.2% (responds to NYT article)

After Hours Losers:

Companies trading lower in after hours in reaction to earnings/guidance: TLRY -4.2% (also to acquire HEXO Corp), PBPB -2% (guidance)

Companies trading lower in after hours in reaction to news: KRUS -7.1% (public stock offering), SCLX -1.8% (stock offering), PGY -1% (extends partnership with GIC), SGML -0.4% (delay annual filing), TTWO -0.2% (to sell $1.0 bln Senior Notes), (RKLB -0.2% (to launch four TROPICS satellites)