After years on the sidelines, gold producers are suddenly the mining world’s hottest topic as the industry gathers in Cape Town this week.
For more than half a decade, gold miners have been stuck in the doldrums, shunned by investors following a string of missteps and bogged down by a stagnant bullion price. Then, in September, a surprise mega deal turned the industry on its head.
Barrick Gold Corp.’s $5.4 billion purchase of Randgold Resources Ltd. set off a chain reaction that led to Newmont Mining Corp.’s $10 billion deal for Canada’s Goldcorp Inc. last month. The flurry of activity – which coincided with a late-2018 surge in bullion prices – has re-ignited interest in gold, throwing the whole industry into a thrall of speculation over who might be next.
“It’s an exciting time to be a gold miner,” said Martin Horgan, the chief executive officer of Toro Gold, who arrived in Cape Town this weekend.
Horgan said while specialist funds have remained supportive of profitable companies, he sees the resurgent gold price drawing generalists back to the sector.
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