Gold M&A deals are showing a continuation of the trend towards lower valuations of gold assets being acquired. According to the M&A data in the Strategies for Gold Reserves Replacement report, 58.4 Moz of gold reserves acquired in company and project deals in 2015 almost doubled the acquired gold reserves of 31.2 Moz in 2014. However, the total acquisition price of $9.47 billion only rose by half of the acquisition price of $6.14 billion paid in 2014. The price paid per ounce of gold in reserves was therefore reduced by almost 20% to $162/oz in 2015.
The Strategies for Gold Reserves Replacement is a series of reports analyzing the industry's efforts to enhance the supply pipeline. The recently published M&A Activity report is part of the report series.
Highlights of the Gold M&A Activity report are below:
- While the annual total acquisition price paid for gold has steadily declined after reaching a peak in 2010 at US$22.02 billion, the total acquisition price of US$9.52 billion in 2015 was the third highest in the ten-year period.
- Latin America was the most expensive global region for gold reserves acquisitions between 2006 and 2015
- In addition to the 112 gold reserves acquisitions, 175 gold acquisitions ($25 million minimum) involving at least 1 Moz of resources and small or no reserves were announced between 2006 and 2015
- Canada-US accounted for 27% of the gold in resources that changed hands in resources-only deals