Loading ...Gold dealmaking set to take off along with prices, Gold Royalty’s Garofalo says
A senior gold-mining executive sees the potential for a record year of mergers and acquisitions as companies turn to deals to prop up production at a time of rising bullion prices.
An M&A cycle that kicked off with Barrick Gold Corp.’s 2018 takeover of Randgold followed by Newmont Corp.’s purchase of Goldcorp is only just beginning, said David Garofalo, the former Goldcorp boss who now oversees Gold Royalty Corp.
In the past decade and a half, the industry has been focused on strengthening balance sheets and paying dividends, resulting in a depletion of reserves. To avoid that turning into a production slump, companies will scoop up more single-asset players, Garofalo said in an interview Monday.