Foreign ownership cycle of Australian gold production

Global Mining Research

David Radclyffe’s latest gold sector report examines the M&A cycle in Australia, with the country having witnessed a full cycle of foreign acquisitions. The trend started with the significant loss of Australian mines, peaking in 2003 at 60% foreign ownership. Over the years the trend reversed, but now the cycle has moved back to Australian gold companies and assets being attractively priced to international peers. With the proposed acquisition of Newcrest by Newmont, we could see foreign ownership levels lift back to ~40%. Northern Star and Evolution appear well poised to attract domestic investors looking to move on from Newcrest and to take advantage of the next phase of industry rationalisation in Australia.

- 09 June, 2023

Does gold M&A create value? A rational screen offers clues

Global Mining Research

The recent proposed offer by Newmont to acquire Newcrest demonstrates that corporate M&A is alive and well in the gold sector, but it also raises the question as to whether it creates value. David Radclyffe’s latest report analyses major mergers over the past five years in the gold sector, concluding that most deals do not create lasting value – less than one-third show positive returns a year after the deal. Global Mining Research have developed a screen to explain why some deals generate a positive initial market reaction and others do not, providing investors with a ready tool.

- 17 February, 2023