This year, we have seen some significant merger and acquisition (M&A) activity in the mining industry, as well as some major deals happening! In Q4 2022, we witnessed Rio Tinto take on the rest of Turquoise Hill, and so far in 2023, we have had big players B2Gold buy Sabina Gold & Silver, and mining giant BHP grab OZ Minerals. These deals reflect a few key trends - some companies are making routine acquisitions to expand their asset base, others are diversifying their portfolios towards metals needed for batteries and renewable energy infrastructure like lithium and copper, and a few seem to be trying to take over the world! As always, we are excited to see what the rest of the year brings and can’t wait to share our thoughts and insights with you all!
Jess Scanlan
Head of New Media
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Newmont Cleared To Buy Newcrest
Newmont Corporation has cleared another hurdle in its acquisition of Newcrest Mining Limited. The Canadian Competition Bureau has issued a "no action" letter, approving the deal under Canadian competition law. This $17 billion transaction, announced in May, will combine two leading gold mining companies to create a world-class portfolio of tier 1 assets in low-risk jurisdictions.
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Glencore To Acquire PolyMet Mining
Glencore is digging deeper into Minnesota's mineral-rich Duluth Complex, acquiring a 17.8% stake in PolyMet Mining for $2.11 per share. The generous 167% premium allows PolyMet's shareholders to cash out at a high valuation while Glencore gains more control over the region's coveted copper, nickel, and platinum reserves. With the global clean energy transition accelerating demand for these strategic minerals, the deal allows Glencore to solidify its foothold in this prime US mining district.
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UAE Signs Deal To Develop Mines In Eastern DR Congo
The United Arab Emirates has signed a $1.9 billion deal with the Democratic Republic of Congo's state mining company to develop at least four mines in the country's conflict-ridden east. This partnership comes after the DRC awarded export rights to a UAE firm for artisanally mined minerals, seeking to undercut smugglers funding militias plaguing the region. Despite peacekeeping deployments, violence has continued, displacing millions. This deal marks a major investment in the DRC's turbulent mining sector.
Audi Teams With Mining University To Research Mineral Recycling Tech
Audi is funding research at Germany's Freiberg University of Mining and Technology to develop new recycling technology to recover critical minerals from electronics waste. The university is designing molecular "tweezers" that can selectively extract metals like tin, gallium, and indium from incinerated electronics and fly ash. This innovation allows valuable minerals to be recovered even when electronics are not properly recycled. The molecules bind to specific metal ions, which can then be separated and recycled into new tech.
Gold Is Going Higher, But Investors Should Be Looking At Miners
As the Federal Reserve nears the end of its tightening cycle, portfolio manager Ryan McIntyre sees value re-emerging in gold equities. While physical gold provides important portfolio diversification, he believes miners offer more tactical upside after years of dismal sentiment and capital constraints. Senior producers with solid cash flow offer relative safety, but greater value and risk lie with smaller companies. Streaming/royalty firms also provide leveraged exposure to gold prices without production costs. Ultimately, McIntyre expects higher gold prices to boost sentiment and attract investors back to the mining space. But with sovereign debt risks looming, he emphasizes gold's role as an island of independence amid economic uncertainty.
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