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Gold M&A in 2021 was dominated by the $10.62 billion merger of equals between Canadian majors Agnico Eagle Mines Ltd. and Kirkland Lake Gold Ltd., a high-profile transaction that topped Newmont Corp.'s 2019 acquisition of Goldcorp Inc. and signaled an ongoing trend of industry consolidation. The total deal value was up and the acquired gold was down year over year in 2021. A strong market price drove the price paid for gold reserves during the year to a decade high of $436 per ounce.
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Companies with established production, rather than projects still in development, have been increasingly favored as targets over the past four years as large producers look to expand their geographical footprint around proven and operating assets, and smaller miners add production to take advantage of the high-price environment. The majors have unsurprisingly been the most active group of buyers, engaging in the most deals with the highest deal values. A shrinking list of available assets, however, coupled with depleting reserves, will shape the M&A landscape in the coming years and have a strong influence on the price paid per ounce of gold acquired.
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