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A push by the world’s biggest gold miners to get even bigger will likely have a knock-on effect among their competitors, adding new vigor to an industry that failed to inspire investor support in 2018.
The megamerger mania now under way for Newmont Mining Corp., Barrick Gold Corp. and Goldcorp Inc. is likely to result in some of their assets being sold, helping to diversify portfolios for other miners and boosting the interest of investors. More importantly, it could force mid-tier companies to team up in order to successfully compete.
A gauge of 14 big gold producers tracked by Bloomberg Intelligence tumbled 10 percent last year, the first decline since 2015, as bullion prices languished below $1,300 an ounce, crimping margins. Since Jan. 1, however, the shares have gained 5.8 percent, making them more attractive to investors and potentially spurring a new emphasis on growth.
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