https://www.miningweekly.com
Cutting|Gold|Indaba|Mining|Projects|Resources
Cutting|Gold|Indaba|Mining|Projects|Resources
cutting|gold|indaba|mining|projects|resources

Gold miners get their mojo back as giant deals revive allure

Barrick Gold CEO Mark Bristow

Barrick Gold CEO Mark Bristow

Photo by Creamer Media

4th February 2019

By: Bloomberg

  

Font size: - +

LONDON – After years on the sidelines, gold producers are suddenly the mining world’s hottest topic as the industry gathers in Cape Town this week.

For more than half a decade, gold miners have been stuck in the doldrums, shunned by investors following a string of missteps and bogged down by a stagnant bullion price. Then, in September, a surprise mega deal turned the industry on its head.

Barrick Gold’s $5.4-billion purchase of Randgold Resources set off a chain reaction that led to Newmont Mining’s $10-billion deal for Canada’s Goldcorp last month. The flurry of activity –  which coincided with a late-2018 surge in bullion prices – has re-ignited interest in gold, throwing the whole industry into a thrall of speculation over who might be next.

“It’s an exciting time to be a gold miner,” said Martin Horgan, the CEO of Toro Gold, who arrived in Cape Town this weekend.

Horgan said while specialist funds have remained supportive of profitable companies, he sees the resurgent gold price drawing generalists back to the sector.

As thousands of executives, investors and bankers fly in to Cape Town for the annual Mining Indaba conference, one of the big themes for the week is likely to be the future of South Africa’s own gold mining industry.

The country’s gold output fell for a 14th straight month in November as the sector grapples with cost pressures, geological challenges and labour disputes. The biggest Johannesburg-based producer, AngloGold Ashanti, is currently considering a London listing and exiting its last South African gold projects, people familiar with the matter said in December.

Further afield, analysts have tapped companies from Kinross Gold to Iamgold and Australia’s Newcrest Mining as names to watch amid expectations that the wave of deals has further to run. 

Gold equities have also been boosted by a rebound in bullion. The metal’s impressive December rally has carried over into 2019 as concerns stack up about slowing global growth and holdings in exchange-traded funds continue to expand.

For the wider mining industry, the excitement around gold has served as a shot in the arm at a time when big diversified producers are veering away from dealmaking fireworks in favour of asset sales, cost cutting and shareholder returns.

It’s also a boon for the Mining Indaba. In recent years, the largest global producers have had a shrinking public presence at the conference, with no sign of executives from Glencore or BHP and a reduced role from Rio Tinto.

Only Anglo American, the century-old miner built on South Africa’s natural resources, is sending its CEO this year. The company also hosts the official dinner at its 300 year-old Vergelegen wine estate, an hour’s drive from Cape Town.

The gold industry, however, is showing up in numbers. Barrick’s new South African boss Mark Bristow and AngloGold chief Kelvin Dushnisky are both on the conference program, while Newmont is sending its external-relations head.

“We are seeing more interest in gold names and more incoming calls after a poor performing 2018,” said Credit Suisse Group. “Mergers have rekindled near-term interest in the sector, along with rising gold.”

Edited by Bloomberg

Comments

Showroom

Booyco Electronics
Booyco Electronics

Booyco Electronics, South African pioneer of Proximity Detection Systems, offers safety solutions for underground and surface mining, quarrying,...

VISIT SHOWROOM 
Goodwin Submersible Pumps Africa (Pty) Ltd
Goodwin Submersible Pumps Africa (Pty) Ltd

Goodwin Submersible Pumps Africa is sole distributors for Goodwin electrically driven, submersible, abrasion resistance slurry pumps.

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Hyphen, Eva mine, ferrochrome price make headlines
Hyphen, Eva mine, ferrochrome price make headlines
27th March 2024
Resources Watch
Resources Watch
27th March 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.107 0.142s - 90pq - 2rq
Subscribe Now