A year ago, a mining major asked my firm look around for M&A opportunities. They felt that the proven resources of some of the targets we identified were too little for them and the share prices of others were too high. They were willing to wait for share prices to decline. With the recent steep decline in share prices generally and being cash rich, I imagine that they are getting ready to go on an acquisition spree.
Mining executives are anticipating a pick-up in deal-making with the sharp 40 per cent drop in sector share prices over the last 10 months flushing out corporate predators.
Qatar Holding, an arm of the gulf state’s sovereign wealth fund, is planning to create a standalone investment vehicle to buy stakes in, or take over, gold companies.
