Evy Hambro, MD of Natural Resources at BlackRock, says asset sales and cuts to capital expenditure mark a return to sensible management in the resources...

Evy Hambro, MD of Natural Resources at BlackRock, says asset sales and cuts to capital expenditure mark a return to sensible management in the resources sector. He says the process we are now seeing is where assets that can't be sold get spun off or demerged. It's a natural part of the cycle and something he has seen many times before. Hambro is relieved that there has been minimal M&A activity recently, a trend he hopes will continue. I think most large scale M&A transactions that took place since 2007, have been value destructive for the resources sector. When it comes to investing in companies spinning off assets, Hambro says he prefers to be on the side of the company buying the asset. In fact, in the very recent past Hambro says BlackRock has profited handsomely by financing companies buying assets demerged from bigger businesses. Full Interview: (VIEW LINK)