Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Commodities  >  Gold       XAUUSD

GOLD

SummaryQuotesChartsNews 
News SummaryAll newsMarketScreener Strategies

Gold M&A back on the agenda as coronavirus restrictions ease

share with twitter share with LinkedIn share with facebook
05/29/2020 | 11:01am EDT
FILE PHOTO: Melted gold flows out of a smelter into a mould of a bar at a plant of gold refiner and bar manufacturer Argor-Heraeus SA in the southern Swiss town of Mendrisio

By Zandi Shabalala and Jeff Lewis

A lull in corporate takeover activity among gold miners is expected to end as new coronavirus-linked travel restrictions are lifted in coming months, clearing the way for prospective buyers, industry executives and fund managers said.

Deals this year have been hobbled by lockdown measures to curb the spread of the virus, preventing acquirers from travelling to inspect acquisition targets.

Miners year-to-date have struck 275 transactions worth about $6.9 billion (£5.61 billion), including net debt, according to data from Refinitiv, down from 329 deals valued around $26.8 billion in the six months to June 2019.

Last year's tally included the closing of multibillion-dollar deals by Barrick and Newmont.

"Our industry is considering coronavirus a thing of the past as most countries are easing lockdowns and this should propel M&A activity again," said Ingo Hofmaier, SolGold's executive general manager of project and corporate finance.

"Uncertainty and inability to visit mine sites was clearly not helpful."

(GRAPHIC: Gold mining mergers hit coronavirus snag -

)

Solgold, whose largest shareholder is BHP, earlier this month struck a financing deal worth up to $150 million with streaming company Franco-Nevada Corp.

Gold is trading at its highest since 2013, around $1,700 an ounce, because of its safe-haven appeal.

"We are being shown a lot more deals but with coronavirus, due diligence is tricky if you are not based on the ground and near the site," said Bert Monro, chief executive of West Africa-focused Cora Gold.

Deals this year largely took shape before the outbreak, executives and bankers said.

In March, Endeavour Mining offered C$1 billion ($726.9 million) for Toronto-listed Semafo. Silvercorp Metals this month hiked its bid for Guyana Goldfields, while China's Shandong Gold Mining offered C$230 million ($167.9 million) for struggling TMAC Resources. SSR Mining also snapped up Alacer Gold.

"Overall we expect more deals in the mid-cap space as companies compete to become relevant," said David Baker of Baker Steel Capital Managers.

(Reporting by Zandi Shabalala in London and Jeff Lewis in Toronto; editing by Ernest Scheyder)

Stocks mentioned in the article
ChangeLast1st jan.
ALACER GOLD CORP. -1.30% 9.89 Delayed Quote.43.33%
BARRICK GOLD CORPORATION -1.81% 36.82 Delayed Quote.52.65%
BHP GROUP -0.74% 36.19 End-of-day quote.-7.01%
CORA GOLD LIMITED 0.00% 8.75 Delayed Quote.55.56%
DOW JONES AFRICA TITANS 50 INDEX 0.38% 464.01 Delayed Quote.-13.95%
ENDEAVOUR MINING CORPORATION -0.96% 34.11 Delayed Quote.39.05%
GOLD -0.30% 1798.3 Delayed Quote.18.89%
GUYANA GOLDFIELDS INC. 1.14% 1.78 Delayed Quote.154.29%
LINE CORPORATION -0.54% 5500 End-of-day quote.2.80%
S&P AFRICA 40 INDEX 0.15% 153.57 Delayed Quote.-11.24%
SEMAFO INC. 4.61% 4.77 End-of-day quote.76.67%
SHANDONG GOLD MINING CO., LTD. -5.42% 39.3 End-of-day quote.20.48%
SILVERCORP METALS INC. -0.37% 8.01 Delayed Quote.9.28%
SOLGOLD PLC 8.33% 22.1 Delayed Quote.10.50%
SSR MINING INC. -1.39% 30.54 Delayed Quote.23.93%
THE NEW HOME COMPANY INC. 2.16% 3.31 Delayed Quote.-28.97%
TMAC RESOURCES INC. 0.00% 1.54 Delayed Quote.-59.26%
share with twitter share with LinkedIn share with facebook
Latest news on GOLD
07/10Materials Up As Gold, Copper Hold Near Recent Highs -- Materials Roundup
DJ
07/10Stocks jittery as record U.S. virus count weighs on risk appetite
RE
07/10Stocks jittery as record U.S. virus count weighs on risk appetite
RE
07/10Gold slips as higher equities weigh despite rising virus cases
RE
07/10CANADA STOCKS-TSX rises after domestic unemployment rate in June falls
RE
07/10EUROPE : Upbeat economic data helps European shares snap three-day losing run
RE
07/10EUROPE : Upbeat economic data helps European shares snap three-day losing run
RE
07/10Asia Gold-India dealers charge premiums as imports, smuggling stall
RE
07/10Upbeat economic data helps European shares snap 3-day losing run
RE
07/09Materials Down On U.S. Growth Concerns -- Materials Roundup
DJ
More news
Chart GOLD
Duration : Period :
Gold Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends GOLD
Short TermMid-TermLong Term
TrendsBullishBullishBullish