2012 will see record M&A
PwC Global Mining Team predicts that "2012 will see record M&A volumes and values in the global mining sector."
"With over $105 billion in cash, pent-up demand for new projects, rising production costs and declining developed world reserves, miners will seek out targets to build scales and cost efficiencies," said PwC in their annual Global Mining 2011 Deals Review & 2012 Outlook
PwC's analysis also forecasts "a continued health level of takeover activity, led by large intermediates" in the gold sector. These miners are likely to target companies with:
- "future production profiles showing declining cash costs per ounce (especially if acquisitions can lower consolidated cash costs per ounce)
- "exploration and development projects in political stable regions with lower operating costs
- "projects that may be synergistic to a buyer's existing operations via labour, capital or equipment efficiencies."
https://www.mineweb.co.za/mineweb/view/mineweb/en/page67?oid=146785&sn=Detail&pid=102055