May 17, 2020

Commodities rally of 2016 leaves mining industry in “far better shape” says Investec

Investec
Gold
Mining finance
asset allocation
Dale Benton
1 min
Commodities rally of 2016 leaves mining industry in “far better shape” says Investec
Investec, the financial analyst service across the UK, South Africa and Australia, believes that the mining industry could represent a ‘key sector...

Investec, the financial analyst service across the UK, South Africa and Australia, believes that the mining industry could represent a ‘key sector’ for asset allocation, with particular strength in gold commodities.

The company, in a report released today, believes this is a result of strong commodity rallying and sustained cost cutting since the beginning of 2016.

“The turn of the year proved, in hindsight, to be the point of peak pessimism; since then, the mining industry has begun to heal itself and cleanse some of the sins of the past. We moved into cautious buy territory in April this year, by moving our Investec Mining Clock forward to 4 o’clock and have seen buying momentum continue, despite the recent Brexit vote,” said the company in a report.

“The rally in industrial commodities and oil that began early this year has matured into a broad stabilisation in many prices above cyclical lows. As a result, we believe the mining sector has finally become a serious choice among asset allocators, despite having been largely avoidable for the last five years.”

Gold has been identified as one of the top commodities moving forward, as the rally for the commodity is “symptomatic of a world beset by uncertainty.”

Read the July issue of Mining Global Magazine!

Be sure to follow @MiningGlobal for news and latest updates.

 

Share article

May 17, 2021

Newmont acquires Canada’s GT Gold in $325mn deal

Newmont
GT Gold
Gold
Copper
2 min
Newmont has purchased the remaining 85.1% common shares of Canada’s GT Gold to complete its buy out Gold in a deal worth $325mn

Newmont, the world’s biggest gold miner, has acquired Canada’s GT Gold in a deal worth $325mn. The gold giant now controls the Tatogga gold-copper project in the Traditional Territory of the Tahltan Nation.

GT Gold

“With the acquisition of GT Gold and the Tatogga project in the highly sought-after Golden Triangle district of British Columbia, Canada, Newmont continues to strengthen our world-class portfolio,” commented Newmont President and CEO Tom Palmer.

“We look forward to continuing to build a respectful and meaningful relationship with the Tahltan Nation, including the community of Iskut. The relationships we have with Indigenous communities, First Nations and host communities are critical to the way we operate. We will partner with the Tahltan Nation at all levels, and with the Government of British Columbia to ensure a shared path forward as the Company understands and acknowledges that Tahltan consent is necessary for advancing the Tatogga project.”

Newmont

Newmont

Newmont’s acquisition includes the Tatogga project, comprised primarily of the Saddle North deposit, which has the potential to contribute future significant gold and copper annual production. There are also further exploration opportunities beyond the known deposits at Saddle North within the land package. The Tatogga project adds to Newmont’s existing interest in the prospective Golden Triangle through the company’s 50% ownership in the Galore Creek project.

Newmont is the world’s leading gold company and a producer of copper, silver, zinc and lead. A world-class portfolio of assets, prospects and talent is anchored in favourable mining jurisdictions in North America, South America, Australia and Africa. The American miner is celebrating its 100th anniversary this month.

Gold

With gold prices on the rise, the last six months has seen gold industry M&A activity accelerating. A recent Mckinsey report, advises that the industry need to be mindful of mistakes made during the previous gold price boom, when growth was chased unidirectionally by several companies.

 

Share article