Blog Post

18 June 2015

TIMING AND STRATEGY DRIVES M&A ACTIVITY IN MINING

When is it the best time to acquire or sell your mining assets?  It all depends on your long-term strategy, economic conditions, past decisions and current opportunities.  For example, Newmont Mining, (NYSE:NEM) based in Greenwood Village, is acquiring a Colorado mine for growth purposes having sold about $1.5 billion worth of assets in the last two years when prices were low;  AngloAmerican (NYSE:QU) based in Johannesburg, South Africa is divesting as part of their strategy to cut debt and immediately strengthen their balance sheet. The deal “puts 820 million US dollars into our bank account, saves 200 million US dollars in capital expenditure, and gives us continued exposure to the asset through an uncapped royalty on future underground production,” AngloGold said. To see the entire article visit Denver Business Journal.