03:45:11 EDT Sat 26 Sep 2020
Enter Symbol
or Name
USA
CA



Login ID:
Password:
Save

FP says Kirkland's Detour move heralds more of the same

2020-01-02 09:30 ET - In the News

Also In the News (C-ABX) Barrick Gold Corp
Also In the News (C-NGT) Newmont Goldcorp Corp

The Financial Post reports in its Saturday edition that it has been a good year for gold bugs. The Post's Gabriel Friedman writes that as 2018 drew to a close, gold was struggling to break $1,300 (U.S.) per ounce and precious metals mining companies were stuck in the doldrums (all subsequent figures Canadian). Sprott boss Peter Grosskopf is predicting a wave of merger activity among smaller mining companies with market caps between $800-million and $2-billion. He says the majors will be buying junior miners to fill their development pipeline. "That trend is just getting started." In 2019, there has already been more than $30-billion in gold market mergers with the two largest gold producers in the world, Newmont Mining and Barrick Gold, starting the year off with multibillion-dollar acquisitions. Other deals, most recently Kirkland Lake Gold's $4.4-billion acquisition of Detour Gold, have followed. Mr. Grosskopf says the dollar value of all deals in 2020 is not likely to match 2019, but there are likely to be a greater number of deals. His thesis is also underpinned by the idea that gold prices are set to rise again in 2020, driven in his mind by the increasing debt loads of governments and corporations.

© 2020 Canjex Publishing Ltd. All rights reserved.