Post by
Highway101 on Dec 03, 2010 3:09am
Sean Boyd on consolidation
When asked about consolidation in the mining sector Boyd responded, “Consolidation will continue because there is a lack of growth in certain quarters, and it gets to the point in some instances where it’s cheaper to buy than to hope that exploration is going to solve your growth challenges. So there will be more consolidation but I think it is going to be selective.
I am not sure of the exact number, but let’s say there are only 20 companies that can actually build mines in the industry. That means there are only 20 potential buyers, and there’s maybe thousands of potential projects out there, so there is a limit to what can get done.
So you have to be in stories with good solid deposits, good management and I think you will be ok there because eventually they will get taken out in this environment.”