Ranking the biggest gold mining M&A in 2019
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(Kitco News) - Newmont's acquisition of Goldcorp loomed large over a busy year of mergers and acquisitions.
The $10 billion deal, announced in January, kicked off the year, which was forecast to see a flurry of M&A due to higher gold prices and a need by miners to replenish dwindling ounces. Twenty-eighteen offered a prelude when Randgold merged with Barrick Gold (NYSE:ABX);. The majors have also been selling off assets so they can accummulate cash on secondary operations while prices are high and focus on tier-one assets.
Next year will show no let up. The M&A trend is expected to continue in 2020.
Here is Kitco's top M&As of 2019. Did we miss anything? Leave a comment below.
1. Newmont - Goldcorp: $10B
Newmont completed its $10 billion merger of Goldcorp in April. The company expects to produce 6 million to 7 million ounces of gold production per year over a decades-long time horizon. Newmont has been selling off a number of assets, notably Red Lake for $375 million; and Kalgoorlie for $800 million.
2. Kirkland Lake - Detour Gold: $3.68B
Kirkland Lake Gold (NYSE:K) announced an all-share deal of $3.68 billion to acquire Detour Gold in November. The market didn't like the deal and subsequently punished Kirkland with a 20% stock drop after the acquisition was announced. The deal is still pending and awaits shareholder approval in the new year.
3. Endeavour Gold - Centamin: $1.9B
Endeavour Mining (TSE:EDV) would like to do a deal with Egyptian miner, Centamin (TSE:CEE). A $1.9 billion deal is on the table. Endeavour and Centamin have been doing some sniping in the press while discussions grind forward. Endeavour operates four mines located in the countries Côte d’Ivoire and Burkina Faso.
4. Zijin Mining Group - Continental Gold: $1B
China's largest mining company made a cash offer of $1 billion for Canada's Continental Gold. Continental is finishing construction of its Buriticá gold project in Colombia, the country's first new gold mine to open in decades. The company expects to start commercial production in the first quarter of 2020.
5. Equinox Gold - LeaGold Mining: $578M
Announced earlier this month, Equinox Gold (NYSE:EQX) acquired Leagold Mining in an all-stock deal. Gold production from the combined companies is projected at 700,000 ounces in 2020, then increasing to 1 million ounces in 2021 and beyond
6. St. Barbara - Atlantic Gold: $536M
An Australian miner came to Canada to purchase a maritime company. Atlantic Gold is an open-pit gold miner based in Nova Scotia. St. Barabara (ASX:SBM) has gold mines in Western Australia and Simberi.
7. Resolute Mining - Toro Gold: $274M
The other big African M&A story was Resolute Mining (LSE:RSG) acquiring Toro Gold. Toro's flagship operation is the Mako Gold Mine in Senegal, which produced 156,926 ounces of gold at an all-in sustaining cost of US$655/oz. Resolute opened its Syama underground mine in Mali this year.
8. Osisko Gold Royalties - Barkerville Gold Mines: $258M
The streaming and royalty company Osisko Gold Royalties (NYSE:OR) acquired all of Barkerville Gold Mines, which is developing a project in central British Columbia. Before the deal was announced, Osisko was funding Barkerville with a streaming agreement.
9. Northern Star Resources - Echo Resources: $169M
Northern Star (ASX:NST) is consolidating land around its Yandal gold project in Western Australia. Northern Star also gains access to Echo's Bronzewing processing plant.