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Remotely controlled tipper trucks operate at a Rio Tinto iron ore mine in Western Australia.HANDOUT/Reuters

So much for paring assets to bolster your balance sheet. In this market, resource companies are quickly learning they may have to muddle through with what they've got.

Call it the perfect storm. Or call it incredibly bad luck. But companies looking to sell energy and mining plays just can't find buyers for their non-core assets as commodity prices slump, debt costs rise and equity markets fluctuate.

The latest evidence came Monday when Rio Tinto Ltd. announced it couldn't find someone to purchase its $1.3-billion diamonds business, following failures from the likes of Vale to sell Australian assets.

Energy players are also feeling the heat. At least a half-dozen companies who tried to unload oil sands assets in the past year came up empty-handed, prompting the likes of ConocoPhillips and Marathan Oil to pull back on their plans.

Facing these dismal prospects, wishful sellers are quickly realizing that they need to come up with other options. Sadly, it looks like one of their most viable choices is to cross their fingers and hope they can ride out this rout. Asset sales are hard to come by at respectable prices, equity markets are nearly impossible to tap for fresh funds and fixed-income investors have little confidence in new issues as government yields soar.

This doesn't mean all prospective deals are toast. Rio Tinto has been trying to sell its majority stake in Iron Ore Company of Canada, and Reuters reports that the sale process is moving along with three bidders left. Natural gas deals have also remained somewhat appealing for energy firms, prompting Canadian Natural Resources to hop on the bandwagon and attempt to unload some of its Montney assets.

But for even these deals, there are questions as to what prices the sales will fetch. Go low enough, and it's almost always possible to find a buyer.

That very fact has some people wondering if whole companies could get scooped up because equity prices are in the gutter. The typical buyers may be hurting – the Rio Tintos, the Barricks – but private equity players could easily swoop in.

However, any resource company is dependent on its underlying commodity price, and none of these prices are pretty right now – especially in mining. Early this morning, copper crashed through the psychological barrier of $3 (U.S.) per pound. That makes these firms hard sells.

The longer you look at this market, the more you realize muddling through may have to suffice.

(Tim Kiladze is a Globe and Mail Reporter.)

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Tickers mentioned in this story

Study and track financial data on any traded entity: click to open the full quote page. Data updated as of 28/03/24 4:15pm EDT.

SymbolName% changeLast
CNQ-N
Canadian Natural Resources
+1.13%76.32
CNQ-T
Canadian Natural Resources Ltd.
+0.87%103.33
COP-N
Conocophillips
+0.35%127.28
RIO-N
Rio Tinto Plc ADR
+0.44%63.74

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