As discussed in our latest
update on M&A activity in the mining industry, there has
been a recent and substantial rise in deal volume and value in the
industry. This is exciting news for mining companies that have
suffered from a sustained downward trend in M&A activity as a
result of low and volatile commodity prices in addition to
political and business-related barriers.
A recent report (the Report) by KPMG elaborates on this
recent surge in activity, focusing on each commodity, geographical
region and asset (according to their stage of development) most
impacted from this increase. Certain of the Report's findings
are set out below:
Commodities
Gold and copper transactions account for well over the majority
of global M&A activity in the first half of 2016. Gold
transactions accounted for 20% of deal value globally, second only
to copper transactions, which accounted for a whopping 59%.
Further, gold transactions accounted for five of the top 10