old’s tumble to the lowest since 2010 promises to prolong a mergers and acquisitions boom that’s seen transactions at a three-year high as weaker prices slash asset valuations. Deals valued at $9.6 billion were proposed or completed in the six months to June 30, up 7 percent on the previous half, as producers including OceanaGold Corp. agreed acquisitions, according to data complied by Bloomberg. They totaled $22.3 billion last year, the highest since 2011, the data show. “I’d expect that thematic to continue and the next wave of activity from an M&A point of view might be
If the gold price does drop further, “I’m sure that will create some fantastic opportunities,” Bill Beament, managing director of Northern Star Resources Ltd., Australia’s second-largest producer by market value, said on a July 27 conference call.
As North American producers grapple with declining prices, miners in Australia are being supported by a falling local currency that’s protecting margins.
“Given we’re still seeing a massive rebasing of resources currencies around the world relative to the U.S., I think there will be significantly more deals,” Sydney-based UBS analyst Jo Battershill said by phone.
