Nora Pincus, a partner at the international law firm Dorsey & Whitney, believes that the significant mergers and acquisition (M&A) activity in the metals and mining space in 2019 will continue into 2020. The Northern Miner reached Pincus in Salt Lake City, Utah.
The Northern Miner: Do you think the market consolidation or M&A activity in the metals and mining industry that started in 2017, and continued through 2018 and 2019, is likely to continue this year and at the same pace? According to the latest research from Bank of America Securities, the total transaction value in global gold M&A last year was US$20.2 billion, a nine-year high.
Nora Pincus: Yes, I do think that market consolidation in the precious metals space is likely to continue through 2020. I don’t think it will be as big in terms of the dollar value, no, but I anticipate that there will be higher volumes and smaller dollar figures. Much of the low-hanging fruit or obvious targets for consolidation have occurred over the last 18 months — the Barricks and the Newmonts of the world — but we are likely to see more M&A in the mid-cap to small-cap areas and potentially more investments in the mid-caps from the majors — either at the company or asset level.
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