First Quantum’s Inmet Win May Signal More Deals
Copper – First Quantum’s successful campaign to win over Inmet’s shareholders could be a sign that smaller mining companies may be starting to recognize the benefits of being part of a bigger group.
Copper – First Quantum’s successful campaign to win over Inmet’s shareholders could be a sign that smaller mining companies may be starting to recognize the benefits of being part of a bigger group.
Fewer deals were closed last year, but the rise of non-traditional players, particularly state-backed firms, continued unabated.
We track the articles that were most interesting this year to our readership, as measured by page views.
Gold – Bloomberg reported that increasing costs and falling ore quality at Alacer Gold Corp.'s (TSX:ASR,ASX:AQG) Australia-based mines, coupled with expansion potential at the company's gold mine in Turkey, make Alacer a good M&A target.
Copper – Reuters reported that 79 percent of Xstrata (LSE:XTA) shareholders approved a merger with Glencore International (LSE:GLEN), but did not do the same for an executive pay plan that has been touted as essential to keeping key managers on staff.
Today’s tough resource markets are weighing on deal making, but cash-rich miners are still spotting attractive opportunities. And gold companies could be especially ripe for takeovers.
Gold – Gold prices contracted for the biggest one-day decline this month after the Federal Reserve failed to commit to more aggressive monetary stimulus. Prices declined about 3.4 percent over the week, with spot market gold prices trading in the range of $1,566.60 per troy ounce.
2011 was a strong year for M&A activity in the mining sector, and so far 2012 is following a similar path.
Copper – M&A activity was strong during the first quarter of 2012 and may be set to increase further in the near future.
As the mining industry heads toward what is likely to be another record year of M&A activity, investors stand to benefit from undervalued junior miners with promising projects.
Get our independent commentary on resource trends and companies delivered to your inbox.