Gold Digger: ‘Looks like M&A is back on the menu, boys!’
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“Looks like meat’s back on the menu, boys!” roars a hungry Orc in the film Lord of the Rings: The Two Towers.
Substitute ‘meat’ with ‘mergers and acquisitions’, and ‘hungry orc’ with ‘gold-starved miners’, in this shitty metaphor and we set the stage for a deal-making blitz.
Gold M&A has been going through a dry spell. In 2019, gold M&A was worth $US26bn. In 2020, just $US9.8bn worth of deals have either been completed or agreed upon so far, according to Bloomberg.
The fact that cashed up producers are hungry for more gold is also good news for potential small and medium-sized takeover targets.
Its more expensive, but often quicker and easier, for these major miners to replace their reserves through acquisitions rather than exploration.
Meanwhile, a fiery Russia vs China battle over 5 million oz gold project developer Cardinal Resources (ASX:CDV) has sent the stock up +320 since March. Who’s next?
The gold price continues to bounce around the $US1,900/oz mark. It was a decent week for ASX-listed stocks — 98 went up, 60 went down, and 35 stayed the same.
Here’s how 193 ASX-listed gold stocks performed October 05 – October 9 [intraday]
Scroll or swipe to reveal table. Click headings to sort. Best viewed on a laptop:
Red Mountain Mining (ASX:RMX) is picking up gold nuggets off the ground at the Mt Maitland project, ahead of a maiden drill program which will kick off in the next seven to 10 days.
Big gold nuggets, like this one:
Drilling at Nexus Minerals’ (ASX:NXM) Wallbrook project in WA’s Eastern Goldfields region has returned high-grade hits including 2m at 12.93 grams per tonne (g/t) gold and 1m at 12.48g/t gold.
Promising results are also pending from a drill program at Torian Resources’ (ASX:TNR) Diorite East prospect.
And Tesoro Resources (ASX:TSO) continues to define wide gold zones at its El Zorro project in Chile. This small cap bolter is now up 884 per cent over the past 12 months.