In 2018, Barrick's acquisition of Randgold Resources for $18 billion initiated a significant rise in mergers and acquisitions (M&A) among gold mining companies.
This trend continued in 2021 with another major merger announcement, as Agnico Eagle Mines and Kirkland Lake Gold combined in a deal valued at nearly $11 billion.
Additionally, several smaller deals occurred that year, such as Kinross Gold's $1.4 billion acquisition of Great Bear Resources, Newcrest's $2.8 billion takeover of Pretium Resources, and the recent $4.8 billion purchase of Yamana Gold by Pan American Silver and Agnico Eagle.
Mining M&A activity remained strong in 2022, reaching its highest level in a decade, with 288 deals totaling $88.2 billion. This performance outpaced the global aggregate M&A activity, which experienced a 34% decline in deal value.
In 2023, mergers and acquisitions in the mining sector continue to thrive. B2Gold announced in February its plan to acquire Sabina Gold and Silver in a deal valued at $823.66 million. In the same month, Newmont Mining unveiled a massive $17 billion takeover bid for Newcrest Mining, Australia's largest gold miner.
More recently, Royal Gold revealed its intention to acquire two Brazilian mines for a total price of $250 million. Several smaller deals have also been announced this year.
The recent surge in gold mining mergers raises concerns about the industry's persistent challenge of declining ore grades.
Over time, the average ore grades in gold mines worldwide have declined. This is primarily due to the necessity of mining lower-grade ores.