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M&A Findings

A Recap of Mining’s Monumental M&A Landscape in 2023

Costmine Intelligence tracks M&A across the industry and here we take stock of the largest deals of 2023. Outside the blockbuster Newmont/Newcrest deal, what’s notable about 2023 mining M&A was ubiquity of Canadian companies and properties. Six of the top 10 deals were Canadian lead and copper/gold were clearly high on the agenda for these acquirers. One of the Canadians, Elliott-backed Triple Flag, is notable for being the sole financial, or streaming and royalty company in the list. While not Canadian, Wyloo metals boasts a number of interests in Canadian properties as it expands its reach across commodities and development projects.

Source – Mining Intelligence

1) Newmont Corporation (NYSE: NEM) & Newcrest Mining Ltd (ASX: NCM) – Newmont Corporation’s purchase of Newcrest Mining Limited aims to create the premier gold company globally, bolstering copper production and solidifying Newmont’s responsible leadership in the industry. This merger is anticipated to yield annual pre-tax synergies of $500 million within 24 months, alongside cash improvements exceeding $2 billion.

2) BHP Group Limited (NYSE: BHP) & OZ Minerals (ASX: OZL) – BHP Group’s $6.4 billion acquisition of OZ Minerals is set to bolster BHP’s copper and nickel holdings, aligning with its strategy to meet the growing demand for minerals crucial for electric vehicles and renewable energy. The merger will prioritize the safe operation of key assets like Olympic Dam, Prominent Hill, and Carrapateena while promoting innovation and sustainable growth to establish a copper hub in South Australia.

3) Agnico Eagle (TSX: AEM) & Francoeur/Arntfield (Wasamac Property) – In March 2023, Agnico Eagle acquired full ownership of the Wasamac property from Yamana Gold, envisioning it as a potential underground bulk mining operation with an annual gold production target of 200,000 ounces. The property encompasses six mining concessions, 281 mineral claims, and five mining leases across approximately 10,269 hectares.

4) Pan American Silver (TSX: PAAS) & Yamana Gold Inc. – In March 2023, Pan American Silver finalized its acquisition of Yamana Gold Inc., bolstering its position as a key precious metals producer in Latin America. With expected annual silver production of 28.5 to 30.0 million ounces and gold production of 1.1 to 1.2 million ounces, the combined portfolio includes 12 operations concentrated in the region where Pan American has over 28 years of mining experience.

5) Metal’s Acquisition (NYSE: MTAL) & Cobar Management Pvt. Ltd. – Metals Acquisition Limited (MAC) and Glencore completed the sale of Glencore’s entire stake in Cobar Management Pty Ltd (CMPL), which owns the CSA copper mine in New South Wales, Australia. Glencore received USD$775 million in cash and USD$100 million in MAC ordinary shares, with a further USD$75 million payment due within 12 months, along with a contingent payment of USD$150 million based on future copper prices and a 1.5% Net Smelter Return royalty on copper.

6) B2Gold (TSX: BTO) & Sabina Gold & Silver Corp Corp. – In April 2023, B2Gold finalized the acquisition of Sabina’s Back River Gold District in Nunavut, Canada, including the fully permitted Goose project. With strong management expertise and financial resources, B2Gold aims to develop the district’s significant gold resources into a large, long-lasting mining operation.

7) Triple Flag Precious Metals (TSX: TFPM) & Maverix Metals Inc. (MMX) – The merger is set to fortify Triple Flag’s position as the world’s fourth-largest gold-focused senior streaming and royalty company. Operating as Triple Flag Precious Metals Corp., the combined entity will maintain a diversified portfolio, ensuring strong cash flows. Based in Toronto, Ontario, it will own 29 revenue-generating assets and a total of 228 assets, expecting increased scale and enhanced financial metrics.

8) Agnico Eagle (TSX: AEM) & San Nicolas/El Salvador (Property) – In April 2023, Agnico Eagle acquired a 50% stake in the San Nicolas/El Salvador project from Teck Resources Limited, forming a joint venture partnership. This collaboration aims to develop San Nicolas, one of the largest undeveloped VMS deposits globally and in Mexico. Production is scheduled to begin in 2026, with initial output estimates of 63,000 tonnes per annum (tpa) of copper and 147,000 tpa of zinc in concentrate for the first five years.

9) Hudbay Minerals (TSX: HBM) & Copper Mountain Mining ULC – The merger will establish a leading copper mining company focused on the Americas, poised to generate stable cash flows from three enduring mines and significant organic growth from top-tier copper projects. All assets in the combined portfolio are situated in favorable mining jurisdictions in Canada, Peru, and the United States. The merged entity ranks as the third largest copper producer in Canada.

 

10)  Wyloo Metals & Mincor Resources Inc. (ASX: MCR) – Wyloo Metals’ acquisition of Mincor Resources establishes it as a producer of high-grade nickel sulphide from the Cassini and Northern Operations mines in Kambalda, Western Australia. With a strong pipeline of growth projects, the combined company will remain a significant nickel producer for at least the next two decades, bolstered by its current production in Western Australia and the Eagle’s Nest project in Ontario.

 

 

 

 

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