Momentum is building for M&A across the gold industry driven by the market, balance sheets and shareholders, a report titled An Activist Gold Rush? by Kingsdale Advisors released Thursday finds.
Mining behemoths Barrick (NYSE: GOLD, TSX: ABX) and Newmont (NYSE: NEM, TSX: NGT) have grabbed headlines with acquisitions of Randgold and Goldcorp respectively. Barrick and Newmont, in a JV that created the world’s largest gold complex, combined their operations in Nevada.
But according to Kingsdale, the junior and intermediate space has seen a flurry of deals as well.
In Q4 2018 and Q1 2019 there were over C$20 billion ($15 billion) in deals announced in the gold industry involving Canadian listed companies and 13 activist campaigns in the last 26 months, the report reads.
Activists scored wins or partial wins in all but three contests. Kingsdale notes specifically that the three management wins all came at small companies while the activist wins came at relatively large companies, demonstrating that size is not a defence.
For the rest of this article: http://www.mining.com/new-theme-emerged-gold-ma-market-report/