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Gold Mining Deals May Rebound Due to Discounted Price

Gold Mining Deals May Rebound Due to Discounted Price  (Bloomberg)

Investment bankers predict a rebound in gold-mining deals this year from a near-decade low in 2013 as producers target assets at fire-sale prices after a plunge in the price of the precious metal. Gold-mining companies are deeply discounted relative to book value compared to the last two decades, according to data compiled by Bloomberg. Meanwhile, producers may be enticed to replace some lost output due to the sale or reduced production if less-profitable mines, said Barclays Plc’s Paul Knight. There were roughly $10.1 billion of deals among gold producers last year, according to data compiled by Bloomberg. That drop measures 4.4 percent less than in 2012 and the smallest since 2004.

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Investment bankers predict a rebound in gold-mining deals this year from a near-decade low in 2013 as producers target assets at fire-sale prices after a plunge in the price of the precious metal.

archive

Gold Mining Deals May Rebound Due to Discounted Price

Investment bankers predict a rebound in gold-mining deals this year from a near-decade low in 2013 as producers target assets at fire-sale prices after a plunge in the price of the precious metal.

Gold Mining Deals May Rebound Due to Discounted Price  (Bloomberg)

Investment bankers predict a rebound in gold-mining deals this year from a near-decade low in 2013 as producers target assets at fire-sale prices after a plunge in the price of the precious metal. Gold-mining companies are deeply discounted relative to book value compared to the last two decades, according to data compiled by Bloomberg. Meanwhile, producers may be enticed to replace some lost output due to the sale or reduced production if less-profitable mines, said Barclays Plc??s Paul Knight. There were roughly $10.1 billion of deals among gold producers last year, according to data compiled by Bloomberg. That drop measures 4.4 percent less than in 2012 and the smallest since 2004.

Written By

Paul Dykewicz is the editorial director of the Financial Publications Group at Eagle Publishing Inc., www.eaglepub.com, of Washington, D.C. Eagle publishes five free, e-letters, 10 weekly trading services and five monthly investment newsletters, Forecasts & Strategies, Successful Investing, Cash Machine, Growth & Dividend Report and The Alpha Investor Letter. He also is the editor of Eagle Daily Investor and the author of the inspirational book, "Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain."

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