Mining M&A In 2024 - Gold Dominates M&A Space For 2nd Consecutive Year - Seeking Alpha21 Mar 2025 09:08
SUMMARY
- M&A activity in the metals and mining space strongly favored gold over base metals in 2024, but there was not any megamerger, like in 2023.
- Gold continued outperforming base metals in both deal value and number of deals in 2024, with more miners and investors coming into the fold.
- Copper M&A activity in 2024 was off to a sluggish start, with only two deals out of the 16 total announced in the first half, but it picked up in the second half.
- Based on the deals announced in the first quarter of 2025, it is likely that gold will continue to gain traction throughout the year and that overall M&A activity will be stronger, following new developments in the global mining sector.
"....Australia welcomed more investment from junior and intermediate buyers, with the average price paid per ounce of gold averaging at $122, with 46 Moz of contained gold R&R handed over. The De Grey-Northern Star deal stood out as one of only two major-led deals in Australia and the largest for gold and for 2024, accounting for a substantial 33% of the total R&R acquired. This was closely followed by Westgold Resources Ltd.'s (OTCQX:WGXRF) takeover of Karora Resources Inc. for $790.8 million. Meanwhile, Newmont turned over around 4 Moz of gold R&R to Greatland Gold PLC (OTCPK:GRLGF) by selling the nonproducing Havieron and Telfer gold mines in Western Australia for $497.6 million. The stream of acquisitions in Western Australia hinted at strategic consolidation efforts, as the promise of profitability from nonproducing assets — such as Hemi in the Pilbara region — rekindled confidence among players looking to bolster their portfolios and cash in on the soaring prices...."
https://seekingalpha.com/article/4769376-mining-ma-2024-gold-dominates-ma-space-2nd-consecutive-year
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