Investing in the Industry: Mining Finance and M&A Outlook
Kimmo Viertola, Kimmo Viertola, Director, Investment Programmes, Finnish Industry Investment
Mining On Top: Helsinki
16-17 September 2013 | Helsinki
Investing in the Industry: Mining Finance and M&A Outlook - Kimmo Viertola, Finnish Industry Investment
1. Investing in the Industry:
Mining Finance and M&A Outlook
Mining On Top: Helsinki
16.9.-17.9.2013
Kimmo Viertola
Finnish Industry Investment Ltd.
2. Finnish Industry Investment Ltd
• Government-owned investment company founded in 1995
• Promotes and stimulates Finnish business, employment and economic
growth
• Investments:
- in private equity funds and directly in growth companies
- always together and on same terms with private
co-investors
• Investments and commitments total €718m (31.12.2012)
19 %
28 %
17 %
21 %
8 %
7 % Early-stage funds €136,3m
Growth funds €204,8m
Buyout funds €121,3m
Direct investments €147,7m
Start Fund I Ky €54,6m
FoF Growth €54,0m
3. FII Mining Cluster Investment Program
• Total funds available 30M€ for:
• Junior mining companies in the feasibility stage or near production
• Participation in the equity/loan issues
• Internationally growing Finnish mining cluster companies providing
services, machines and products to miners
• Program aimed for 5 years.
• Goal to increase the ammount of listed exploration and mining
companies in the OMX Helsinki Exchange
• Investment criteria:
• Co-investments with private investors
• FII investment below 50% of the total financing
• Minority shareholder
• Projects are in Finland
• ESG
3
4. Speedometer of mining projects
4
”Development
companies”
Pre-production
Production
Exploration
Development
Final feasibility study
Preliminary
feasibility study
Small €4m
Large €20m
Small €9m
Large €50m
Small €19m
Large €100m
Small €200m
Large €1000m
Development phases of
mining projects
(approximate)
”Exploration
companies”
”Production
companies”
5. Macro and micro factors conspired
against the sector in 2012…
Source: Ernst & Young
Confidence crisis