M&A activity in the gold sector has been hot, hot, hot this month.
Since March 10th we’ve seen three major acquisitions of junior mining companies – which is not surprising when you consider that gold stocks have been underperforming of late. Gold producers that are sitting on a lot of cash have been able to capitalize on discounted prices, and with interest rates being so low, there’s also a lot of cheap money available to finance these kinds of M&A transactions.
Despite a shaky chart over the last few months, we remain bullish on gold in the long-term. We think there’ll be a lot more M&A deals happening in the sector in the coming months, especially acquisitions of juniors that are in possession of high quality deposits that are in production or near production.
Let’s take a look at what’s happened this month.