(Bloomberg) — A number of gold deals have been announced in recent years during the annual industry gathering in Denver, including 2018’s takeover of Randgold Resources. This year, the buzz is focused on consolidation potential among mid-tier producers, according to one precious-metals veteran.
“There was a lot of gossip around the bar last night about what might be announced this morning,” said David Garofalo, who ran Goldcorp before it was gobbled up by Newmont Corp. and now heads Gold Royalty Corp. “That’s been the custom here.”
Nothing has been announced yet. But Garofalo, attending his first physical conference since the start of the pandemic, sees deal-making among medium-sized producers as long overdue after a spate of tie-ups among the world’s biggest bullion suppliers.
That’s because of shrinking reserves and mine lives as a result of years of under-investment in exploration and development, coupled with the prospect of rising production costs and inflation more broadly.
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