Xstrata all-stars raise another billion

FORMER Xstrata CEO Mick Davis has built up a war chest of almost $US5 billion ($A5.7 billion) for his X2 Resources mining venture and said mining and metals investment opportunities were being reviewed.
Xstrata all-stars raise another billion Xstrata all-stars raise another billion Xstrata all-stars raise another billion Xstrata all-stars raise another billion Xstrata all-stars raise another billion

Mick Davis

Blair Price

In its first statement since March, the former Xstrata executive-run group announced it had secured an additional $1 billion of funding from new investors on Wednesday.

X2’s funding pool has reached $3.3 billion in committed equity capital capable of immediate draw down plus $1.5 billion in “conditional equity”.

“With almost $5 billion in equity and access to significant additional debt funding, X2 Resources is uniquely positioned and we are currently reviewing a number of opportunities in the metals and mining sector,” Davis said.

“We will build on the team’s unparalleled track record of acquiring and integrating assets and supporting the management teams of acquired businesses to create value.”

Co-headed by former Xstrata chief financial officer Trevor Reid, X2 received $US1 billion of backing from Noble Group and TPG last year and has since attracted interest from Australian super funds among other investors.

Both Davis and Reid left Xstrata following its merger with Glencore International last year, with Davis receiving a £14.2 million ($A26 million) payout for stepping down six months early.

X2’s other principals – Andrew Latham, Benny Levene, Thras Moraitis and Ian Pearce – are all former Xstrata executives.

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