A purple patch on the horizon for Australian gold M&A?
In this issue, The Alchemist examines the current state of the Australian gold sector and the likely movers and shakers in the M&A space.
In the last few days, the gold price has reached US$2,000/oz. Globally, the conditions which are pushing the gold price to record levels seem unlikely to abate any time soon.
The Australian gold space has not been in a stronger position than today for a long time, if ever. Among the Australian gold producers and developers, valuations, cash flow generation capability and capital funding availability point to the continuing health of the sector.
The Alchemist feels that consolidation in the Australian gold space is inevitable, and given the relative dearth of quality development options, competition for M&A in the short to medium term could be fierce.