Although the number of global mergers and acquisitions continued to decrease in the first half of the year, gold mine mergers and acquisitions were frequent, especially with economic development, the second quarter of gold mergers and acquisitions set off a wave. The Bank of America report showed that there were 12 mergers and acquisitions in the global gold production industry throughout the second quarter, far exceeding the average level.
Take China Gold Corporation as an example. The most influential domestic merger in the first half of the year was Shandong Gold Mining Co., Ltd. ("Shandong Gold"), a subsidiary of Shandong Gold Group, which acquired Canadian gold producer Temec Resources. It is understood that Temec Resources is a Canadian gold mining company with good growth potential. Headquartered in Canada, it is mainly engaged in the exploration, mining and production of gold resources. Its core asset-the Hope Bay project (100 % Equity) has been completed and put into production in 2017, and currently produces about 9.5 tons of gold. The project is located in a world-class greenstone metallogenic belt in northern Canada and has a good prospect of increasing reserves. This acquisition is another major international gold project after Shandong Gold acquired the Veladero gold mine in Argentina in 2017 and entered into a strategic alliance with Barrick Gold. It is also Shandong Gold’s establishment of a Canadian representative office in 2019. After opening North America and global mining expansion, the first North American project.
Since the second half of the year, gold mergers and acquisitions have begun brewing. On August 16, Yulong shares disclosed an announcement that the company recently signed an "acquisition agreement" with Barto Australia Pty Ltd, and intends to acquire Barto Gold Mining Pty Ltd held by it in cash. (Hereinafter referred to as "Gold Mining") 100% equity. Yulong shares stated that this transaction is an important measure for the company to broaden its business layout and is in line with the company’s strategic development direction and actual business needs; this transaction not only enhances the company’s strength and extends the company’s industrial layout, but also enhances the company’s sustainability Develop capabilities to enhance the company’s market competitiveness and profitability. It is reported that Gold Mining, which Yulong intends to acquire this time, is a company registered and established in Australia. Its core business is gold mining and processing. The company mainly produces and operates gold mining projects in Western Australia.
In addition, on August 25, 2020, Zijin Mining disclosed that it has completed the acquisition of 100% equity of Guyana Goldfield. This is the second gold mine merger and acquisition completed by Zijin Mining in 2020 following the delivery of the Buritika Gold Mine in Colombia, and the company's gold resource reserves so far With more than 2,300 tons, it is the company with the largest reserves of gold resources among domestic listed companies. It is understood that Guyana Goldfields Co., Ltd. is a mining company registered in Canada and listed on the Toronto Stock Exchange. It is mainly engaged in investment, acquisition, exploration, development and operation in the mining sector. Its main asset is Aurora Gold, which owns 100% equity. The mine (in production) and 15 independent exploration assets held through wholly-owned subsidiaries Aranka Gold Inc. and GuyGold Inc. are located in Guyana, South America.
According to S&P data, gold M&A projects in the first half of the year were mainly concentrated in Canada, Australia and other countries. Why is the gold industry ushering in a wave of mergers and acquisitions?
Some experts said that, on the one hand, in recent years, the global high-quality gold reserves have been depleted and mining costs have risen, forcing miners to seek cost-effectiveness and purchase other companies’ gold reserves. On the other hand, CMC Markets market analyst David Madden said that to prepare for broader mergers and acquisitions in the industry in the future, miners have to do more strategically when global economic growth may slow down. transaction.
Some experts predict that large-scale mergers and acquisitions are expected to continue in the second half of the year.
