Outlook Positive for Mining Acquisitions in 2015

December 19, 2014

 

After the quiet and bearish market that defined the mining industry in 2014, many companies are planning big moves in the coming year. According to a recent article from Mining.com, 46% of the companies interviewed expect to pursue an acquisition in the next 12 months. This is almost twice the number from half a year ago and marks the highest level in two years.

 

Also, according to Grant Thornton International, 32% of the respondents out of 250 senior mining executives said their company was looking to make an acquisition and 27% believed they would either be sold or undergo a partial sale.

 

Even with the wait-and-see approach of many mining companies in 2014 there were still some major deals that involved major players in the mining industry.

 

Osisko Mining, a powerful gold mining company, agreed in principal to a $3.9 billion takeover deal from Yamana and Agnico Eagle. This eliminated a hostile bid from Goldcorp and created a strong union of experienced gold miners. After the deal, Osisko changed its name to Osisko Gold Royalties and then agreed to buy gold explorer Virginia Mines for an estimated $424 million. This deal allows Osisko to profit from royalties generated from two gold mines in Quebec.

 

Also, the largest U.S. silver producer, Coeur Mining, bought Paramount Gold and Silver Corp. in an all-stock transaction valued at $146 million. The deal will allow Coeur to begin expansion into the lucrative Mexico market.