A Timeline of Gold M&A Activity in 2020
2020 will be remembered as a year of disasters, some of which changed the world and redefined how we live, function, and trade. If you’re an investor, you’re likely going to remember this year as the one that brought shockwaves to the entire stock market, as well as to already erratic gold activity.
It’s essential to note that ever since the COVID-19 outbreak, the price of gold has been beyond unpredictable. The M&A activity of gold has been of concern since late 2018. And it has now become even more volatile.
But as the world copes with this health crisis and is eventually going back to normal, so aregold prices. We’ve seen some stability in M&A activity between late March andMay, which has revived the acquisition processes.
The following is a timeline of how M&A activity of gold has fluctuated in 2020, up until now:
January: Resolution Mining Sold Ravenswood Gold Mine AndAuteco Minerals Became A Stake Holder In the Pickle Crow Project
The most significant and most shocking gold activity came on 15th January, when an Australian company, Resolute Mining, decided to sell Ravenswood gold mine.
They sold the mine to a Queensland gold mine for a gargantuan price of AU$300 million. This is considered the biggest acquisition of 2020, because ever since 2004, Ravenswood gold mine has produced a total of 1.9 million ounces of gold.
The next shockwave came when Auteco Mineral announced that they’d be acquiring 80% of the Pickle Crow Gold Project. This is Canada’s oldest gold mine, based in Ontario, and has been able to produce 1.5 million ounces of gold to date.
February:ECR Minerals Intends To Sell SLM Gold Project, And Shanta Gold Buys Barrick’s Kenyan Assets
The first week of February saw ECR Minerals intending to sell their SLM Gold Project to a private company called Hanaq in China.
Reportedly, the decision to sell such a significant project will allow ECR to refocus on its Australian project while allowing Hanaq to expand into Argentina. ECR is likely to retain a small 2% net smelter return (NSR) as royalties from the project.
The next major gold dealcame in on February 10 when Shanta Gold signed a contract with Barrickto become a shareholder of Acacia Exploration in East Africa.
The contract made Shanta Gold one of the most significant shareholders of the company, standingata6.4% share.
March: Newcrest Mining Sold Gosowong Mine Sale AndAlio Gold And Argonaut Gold Plan To Merge
Asset acquisition and sell offs remained stable well into March. The first deal in the month was the finalization of the Gosowong Mine sale at AU$90 million by Newcrest Mining. Only a day later, the producer announced that they had gained a 40% stake in the Haverion percent.
This was the last sale of that period, before the pandemic descended upon the world, and mergers and acquisitions were put on hold. Most deals were postponed or discontinued as companies tried to prioritize the financial stability of their workers.
However, one last merger occurred at the end of the month when Alio Gold and Argonaut Gold joined hands. The union has created one single company that has assets across North America.
April: Barrick Acquired Interest In Pueblo Grande
As normalcy was restored sometime in the middle of April, the first merger came through. On 14th April, Barrick announced that the company intended to buy 70% of Pueblo Grande, based in the Dominican Republic.
May: M&A Activity For Magna Gold, Shandong Gold, And AAR Mining &Alacer Gold
The month of May renewed M&A activity in the gold space to a significant extent.
The junior gold mining company, Magna Gold,was the first to acquire a deal in May by taking over the San Francisco mine. To seal the deal and acquire ownership, Magna Gold paid C$2 million to Timmins Gold, a subsidiary of Alio Gold.
The next post-COVID deals came from Shandong Gold when the company acquired TMAC Resources in Canada. The deal was valued at US$149 million.
Other small mergers and acquisitions took place across the world as well, which helped to restore M&A activity for gold miners and companies, allowing them to keep on working smoothly.
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