Ivey Publishing

Product Details

Inmet Mining Corporation: Corporate Bond Issuance
Product Number:
9B13N021
Publication Date:
10/09/2013
Revised Date:
10/09/2013
Length:
18 pages (7 pages of text)
Product Type:
Case (Library)
Source:
Ivey
The chief financial officer (CFO) of Inmet Mining Corporation is considering the pricing and structure of a $500 million bond offering in late 2012. The company required capital to fully fund construction at its biggest asset, the Cobre Panama copper mine, which had been estimated at $6.2 billion dollars. Now, it was preparing yet another bond offering that would ensure these capital cost requirements would be met. Complicating matters was the fact that a competitor, First Quantum Minerals, had made a $70 per share offer to purchase the company in November 2012. The CFO has to weigh options and structure the bond offering accordingly.
Learning Objective:
  • To consider the interplay between acquisition and capital-raising strategies.
  • To explore the pricing of corporate bonds.
  • To consider valuation issues in the setting of a mining company.
Issues:
Disciplines:
Finance
Industries:
Mining, Quarrying, and Oil and Gas Extraction
Setting:
Canada, Large, 2012
Intended Audience:
Undergraduate/MBA
Price:
$5.30 CAD / $5.00 USD Printed Copy
$4.50 CAD / $4.25 USD Permissions
$4.50 CAD / $4.25 USD Digital Download
Associated Materials
Translations: Simplified Chinese (17 pages)
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