Gold’s $50 Billion M&A Spree Builds as Rally Boosts Values

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The average paid in 133 transactions in the three months to June was $64 an ounce of gold equivalent in the ground, up from $36 in the first quarter of 2016, as buyers factor in better long-term price expectations, according to Bloomberg Intelligence.

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After mid-sized producers, including Northern Star Resources Ltd., completed a raft of mine acquisitions from larger rivals, activity is now likely to accelerate in company takeovers and asset deals among smaller companies, according to PCF Capital’s Twigger.

“That’s greased the wheels, and I’m confident that once we get through the Diggers and Dealers conference, we may well see a bunch of deals,” he said. “It’s like a mountain of champagne glasses, you pour champagne in the top row -- and they are the producers -- and it cascades over into the developers. The interest is going to be very strong going forward.”...