Sean Boyd, the chief executive officer of Agnico Eagle Mines Ltd., says there is room for more consolidation in the “fragmented” global gold sector, but operators have to be careful not to repeat the sins of the past.
Even as gold prices have hit a record high over the past year, mergers and acquisitions activity has been relatively quiet, especially compared with the previous rush of big deals from a decade ago.
The industry also saw an aggressive round of consolidation about three years ago, with heavyweights Barrick Gold Corp., Newmont Corp. and Kirkland Lake Gold Ltd. pulling the trigger on multibillion-dollar deals.
But over the past 18 months, deal making has slowed, with medium-sized or smaller acquisitions becoming the norm. During that time, Britain’s Endeavour Mining Corp. made two purchases in West Africa, Vancouver-based Fortuna Silver Mines Inc. bought Roxgold Inc., another West African gold specialist, and Australia’s Evolution Mining Ltd. acquired Toronto-based Battle North Gold Corp.
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