RE:RE:RE:Globe articleAmong gold miners, the shortlist of recent takeovers includes Kinross Gold Corp dropping $610 million last year to acquire a Nevada mine and joining forces this summer with Agnico Eagle on properties in Yukon, and Goldcorp Inc. spending $247 million CDN to acquire a mine in Chile.
Contrast the location of these properties with what we saw during the previous commodity boom, when the country's largest gold miners went on international adventures, Barrick Gold increased its exposure to both Africa and copper by swpending 7.3 billion US on Equinox Minerals back in 2011, and Kinross shelled out 7.1 billion to buy mines in West Africa in 2010, when it took over Red Back Mining. (Not to forget Barrick with Pasqua Lama where they lost almost $8 billion and Argentina blocked the mine completion) These 2 blockbusters continue to haunt the buyers
The previous takeover boom in mining saw massive deals play out in exotic locations against a theme of a global commodity boom, and it ended poorly. The current round of deal-making is low-profile, and no one is going to call Wawa exotic. But the economics and the POLITICS of the latest round of TAKEOVERS makes all sorts of sense.
Enjoy the rest of your day.
Dom