S&P: M&A transactions with gold assets are dominating again
Mega-mergers and acquisitions (M&A) transactions were absent last year, compared with 2023, but this did not prevent gold from becoming a key target among transactions with other metals for the second year in a row, according to a study by S&P Global Commodity Insights.
The total valuation of 62 transactions in this category amounted to $26.54 billion. They covered 192.5 million ounces of gold in reserves, and 29.8 million tons of copper, nickel and zinc in reserves and resources.
"Geopolitical uncertainty will stimulate M&A activity in 2025 as well. Gold and copper will remain key amid rising prices for these metals," S&P Global experts emphasize.
2024 Mining M&A activity in 2024 continued to focus on gold and was supported by increased metal prices, which peaked towards the end of the year.
The total value of the deals increased by 1% compared to the previous year to $26.543 billion, while the figures for 2023 were distorted by the $16.5 billion mega-deal when Newmont acquired Australia's Newcrest Mining.
The average transaction price in 2024 was $428.1 million, which is 24% lower than in 2023 and the lowest since 2020 in the absence of mega mergers.
Despite the fact that the overall increase in the value of transactions compared to last year was insignificant, the increase in the number of transactions (by 32% to 62) led to an increase in small acquisitions in 2024, along with eight announced so far, estimated above $ 1 billion each.
The three largest deals were with companies with a focus on gold and copper.
- Acquisition of De Grey Mining company Northern Star Resources in December 2024 for 3.26 billion dollars;
- Joint buyout by Lundin Mining Corp and BHP Group of the copper project from Filo Corp for $3.03 billion;
- Merger of AngloGold Ashanti Plc and Centamin Plc for $2.48 billion.
The largest acquisition of property was made by Boliden AB, which bought two copper and zinc mines in Europe for $ 1.52 billion.
Metals In 2024, 43 transactions with gold assets totaling $19.31 billion were completed, which could be the highest in five years if there was no Newmont/Newcrest mega-deal in 2023.
The number of copper transactions increased slightly, but the total number was only 26% of the announced 62 transactions. Acquired resources and reserves of copper fell by 52% compared to a year earlier to 21 million tons, as more and more mining companies prefer gold due to the high price.
Nickel attracted even less interest, as only one deal met the criteria of S&P Global experts.
Last year, zinc was involved in two transactions with a total mineral potential of 8.4 million tons. At the same time, there were no zinc transactions at all in 2023.
Exceptions To the general analysis of S&P Global are not