Potential Mergers and Acquisitions in the Gold Market I sense a new round of mergers and acquisitions in the precious metals mining business is about to unfold. Gold miners’ reserves are slipping, and asset scarcity is generating market pressure for larger miners to grow by acquiring smaller ones. Smaller producers with high-quality single mines could be attractive acquisition targets as larger producers look to increase their production and replace their deleting ore reserves.
IAMGOLD could be a potential target for one of the big players facing depleting ore reserve problems. Now that IAMGOLD has basically completed its commissioning phase and is operating at 100% production capacity, it would be a prime target for a takeover. Moreover, the company has substantial ore reserves and great ongoing exploration projects. IAMGOLD is indeed low-hanging fruit with a low share price, so don’t be surprised or shocked if a bid is made for the company. If candidates wait another six months, and the gold price takes off and the share price could easily double, making it an expensive proposition. At this time, we don’t know who is kicking the tires, but the M&A market is heating up. I’m sure the IAMGOLD management is aware that predators are lurking in the shadows.