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Case Studies

Riversdale Mining Limited – South Africa & Mozambique

Investment Rationale

  • An anthracite producer in South Africa with 13 billion tonnes of thermal and coking coal resources in Mozambique
  • Convertible note investment was required to fund the acquisition of the  Zululand Anthracite Colliery in South Africa from BHP (operating asset)
  • Strong management
  • Subsequent investments based on acquisition of coking coal projects in Moatse Basin in Mozambique

Active Involvement from the LinQ Group

  • 2004/05 LinQ assisted in acquisition funding  of the Zululand Anthracite Colliery ($30 M) from BHP Billiton
  • Established strategic relationship with management
  • September 2007, LinQ awarded a 5 year strategic investment mandate to source cornerstone investor
  • LinQ largest shareholder with 9% for initial 4 years
  • Riversdale acquired by Rio Tinto in Q4 2011 for >$4bn

Atlas Iron Limited - Australia

Investment Rationale

  • Atlas is an Australian iron ore company, mining and exporting Direct Shipping Ore (DSO) from its operations in the Northern Pilbara region of Western Australia
  • Strong energetic management
  • Subsequent investments made by LinQ on the back of strong organic growth and further acquisitions
  • Producing at 6 Mtpa to 16 Mtpa DSO haematite

Active Involvement from the LinQ Group

  • Nov 2005, LinQ Lead arranger $6 M placement
  • May 2006,  LinQ Arranger $20 M placement
  • June 2007, LinQ awarded Acquisition Finance Advisory mandate
  • August 2007, LinQ co-Lead for $85 M raising - LinQ introduced largest shareholder into Atlas
  • August 2009, LinQ awarded sell mandate for Ridley magnetite project
  • LinQ largest shareholder for initial 4-5 years

Ferrous Resources Limited – Brazil

Investment Rationale

  • Ferrous is a large unlisted iron ore emerging producer based in the iron ore quadrangle in Brazil
  • World class iron ore project located in a well-endowed iron ore producing region
  • 5 – 6 BN tonnes mineral resource (mainly itabarite)
  • Currently producing fines with large expansion targeted for 2014

Active Involvement from the LinQ Group

  • First investment April 2007
  • Entry valuation $60 M
  • Currently valued at approximately $1 BN