Nice article24 Aug 2020 08:39
No Opinion
Gold sector becomes target for M&A activity on higher gold price - STOCKHEAD24 Aug 2020 05:51
Investors are expecting a flurry of mergers and acquisitions among cashed-up Australian gold companies as higher gold prices fuel takeover activity in the buoyant sector.
“Gold companies are experiencing a ‘perfect paradise’ with a high gold price and low energy prices, so they are generating huge amounts of cash,” gold sector expert Simon Popple, managing director and author of the Brookville Capital Intelligence Report, said...
...Analysts are looking for possible synergies to unlock further value in the Australian gold sector.
They point to the attraction of a having a single owner for Kalgoorlie’s Super Pit in WA.
Currently operated under a 50:50 joint venture, between Northern Star Resources and Saracen, some analysts see value in having a single operator for the mine.
A single owner would streamline operations and reduce costs, they said...
...ASX gold companies with Australian mines are seen as having a higher intrinsic value.
“There is probably a premium for Australian, Canadian and US gold assets, because the market views these as safer jurisdictions (so less chance of nationalisation),”...
https://stockhead.com.au/resources/gold-sector-becomes-target-for-ma-activity-on-higher-gold-price/