From Bloomie:
Things are so bad for mining projects in Brazil that startup All Ore Mineracao SA (AORE3) is changing its line of business for something more glamorous: cosmetics.
All Ore, whose 2009 listing made it the last iron-ore company to start trading on the Sao Paulo stock exchange, said it’s abandoning commodities to focus instead in the beauty and health-care market. The company, which hadn’t yet started operations at iron-ore and gold projects in northern Brazil, will buy a cosmetic producer and change its corporate purpose, it said in a regulatory filing Tuesday.
Investors approved. Shares jumped as much as 70 percent.
AGO has $170 million. You could get a lot of cosmetics for that. I’m only half joking.
It had better buy another business quickly, before investors completely wake up, from BS:
The weakening iron ore price has claimed one of its biggest scalps to date, with volatility in global commodity markets cited as the reason Pacific Equity Partners and Bain Capital have decided against making a binding bid for engineering firm Bradken.
In a statement today, Bradken said its board had been notified by the suitors that it had concluded confirmatory diligence to its satisfaction.
However, despite all parties working constructively to execute a deal, “the recent volatility in global commodity and financing markets has impacted the consortium’s ability to obtain financing on terms acceptable to the consortium”.
