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Gold companies move up list of world's biggest miners

Kitco News

Precious metal companies made notable moves up PwC's list of the world's 40 largest mining companies by market capitalization.

The consultancy released its Canadian Mine report yesterday.

Agnico Eagle made the biggest jump up the list.

"Gold miners dominated Canada's presence on the list, with four of the Canadian companies focused on that sector. Among the notable moves was Kinross Gold Corp. (No. 40), which returned to the top 40 for the first time in several years after reporting increased revenues, earnings and margins in its 2019 results," writes the report's authors. 

Diversified miner BHP Group is number one on the list.

"Topping the list of Canadian companies was Barrick Gold Corp., which ranked ninth (up from 11th in 2018), while Agnico Eagle Mines Ltd. saw the largest jump, rising to 17th from 24th in 2018. Agnico Eagle benefited from higher gold sales volumes as two new deposits in Nunavut came into commercial production in 2019."

PwC noted that all the mines on the top 40 are in better shape financially. Revenues for the group were up 4%, to US$692 billion, and liquidity has improved.

Despite better finances, PwC forecasts deal-making will slow.

"We don’t expect as much activity in 2020, since many companies will likely look to conserve cash and the economic environment makes valuations more challenging. We still see a place for deals to help miners build resilience, particularly through smaller transactions that help companies increase their capital markets profile and attract investor interest. We’ve seen some gold companies entering into these types of deals this year, often through zero-premium transactions," writes PwC.

The biggest deal to date is SSR Mining ’s proposed US$2.4-billion merger with Alacer Gold.

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