GIC explains moves on UBS, Citigroup
SINGAPORE: An unprecedented financial situation in the US and Europe led the Singapore government’s investment agency to take multi-billion-dollar stakes in overseas banks, an executive of the Singapore firm said in a report yesterday.
But the Government of Singapore Investment Corp (GIC) had not changed its investment strategy of traditionally buying relatively small passive stakes in a diversified body of securities, GIC’s managing director and group chief investment officer was quoted as saying in The Business Times.
Ng Kok Song’s comments came after GIC said last Tuesday it would invest US$6.88 billion in US banking giant Citigroup, whose finances have been battered by a US housing slump.
The Citigroup deal came just over a month after GIC said it would pump almost US$10 billion into Swiss bank UBS, another victim of the crisis in the United States sub-prime mortgage sector.
Ng said the approach taken on these two transactions “differs from our norm as GIC sees the current financial situation in US and Europe as being unique and unprecedented.)
He said there was no change in GIC’s investment strategy. – AFP

Carrick Gold to spin off nickel assets
SYDNEY: Perth-based Carrick Gold Ltd will spin off its nickel assets into a new company, Condor Nickel Ltd, to focus solely on gold mining.
Condor will hold all of Carrick’s current nickel and base metal assets while Carrick will hold all gold assets.
“Carrick basically is a gold exploration company and we are nearing a point in our history where we are starting feasibility studies and scoping studies to mine our gold assets,” Carrick director Bevan Jaggard told AAP.
“The fact that we got caught up in the nickel exploration by virtue of finding it while looking for gold is distracting from our main focus.”
Carrick expanded its nickel resources and targets when it acquired Shannon Resources Ltd for A$23 million (K58.8 million) last year.
It plans to list Condor on the Australian stock exchange through an initial public offer of 40 million shares at A$0.20 each, representing about 57% of the firm, and giving it a market value of about A$14 million (K36.4 million). – AAP

Rio looks forward to more growth
PERTH: Rio Tinto Ltd has posted record annual output for key commodities and expects that growth to continue this year, buoyed by strong demand from developing countries including India and China.
Production of iron ore, bauxite, alumina, aluminium, refined gold and refined copper reached record highs in calendar 2007.
But analysts believed this would only have a marginally positive impact on their earnings expectations for the mining giant’s bottom line.
Rio Tinto was due to post its 2007 annual result on Feb 13, and analysts expected net earnings of about US$7 billion (K20.6 million), compared to US$7.4 billion (K21.73 billion) in 2006.
Ord Minnett analyst Peter Arden said while production tonnages were up, metals grades were down largely due to the age of some of Rio Tinto’s operations. – AAP