Wonder if this prediction by BofAmerica comes true this year
last paragraph should be of interest to SOI investors! HB
What to expect in the 2021 mergers and acquisitions market
Jalonen and team said last year’s mergers and acquisitions in the gold mining market was partially driven by senior gold producers disposing of non-core assets. This year, they expect senior mid-tier gold producers to review their recently-enlarged asset basis for non-core assets to dispose of. The result could be the creation of new producers and developers this year, just like last year.
Like 2020, the BofA team expects a renewed focus on regional and bolt-on acquisitions where travel is either limited or not required due to the pandemic. However, they also said desktop analysis of potential targets will soon become standard and replace due diligence site visits, serving as a catalyst for even more mergers and acquisitions.
Jalonen and team see junior and intermediate producers as potential acquisition targets for larger producers struggling to make up their reserves despite declining production. They could also be targets for similar-sized companies that simply want to become bigger. Any companies with stretched balance sheets and limited cash flow could also become targets. Further, the BofA team sees companies with multi-million-ounce gold developments as potential acquisitions for senior and mid-tier gold producers.
Potential targets
Specifically, they named several companies they believe have “intriguing assets” ripe for acquisition. Among the companies they named are Pretium Resources Inc (NYSE:PVG), Victoria Gold Corp (TSE:VGCX), Wesdome Gold Mines (TSE:WDO), and New Gold Inc (TSE:NGD) in Canada. BofA’s list also includes Mexico’s Torex Gold (OTCMKTS:TORXF), Ecuador’s Lundin Gold(OTCMKTS:FTMNF), Australia’s Gold Road Resources Ltd(OTCMKTS:ELKMF), and Ivory Coast’s Perseus Mining(OTCMKTS:PMNXF).
The firm also looked at exploration and development companies as potential targets. Osisko Mining Inc. (TSE:OSK), Marathon Gold Corp (TSE:MOZ), Great Bear Resources Ltd(OTCMKTS:GTBAF), Artemis Gold Inc (OTCMKTS:ARGTF), Pure Gold Mining Inc (OTCMKTS:LRTNF), Battle North Gold Corp(TSE:BNAU), INV Metals (TSE:INV), Sabina Gold & Silver Corp(TSE:SBB), and Sirios Resources Inc (OTCMKTS:SIREF) in Canada all made BofA’s list. In the U.S., the firm named Gold Standard Ventures Corp (NYSEAMERICAN:GSV), International Tower Hill Mines Ltd (NYSEAMERICAN:THM), NovaGold Resources Inc. (NYSEAMERICAN:NG) and Midas Gold Corp(OTCMKTS:MDRPF) as potential targets with interesting assets.