At the beginning of 2019, conditions seemed right for a
significant new wave of M&A activity in the mining sector, with
high expectations focused in particular on gold, copper and battery
metals. However, in the nine months ending September 30, 2019,
global transaction activity by value is down approximately 40% from
the same period in 2018. By way of contrast, deal value during the
comparable period in 2011 being the most recent peak period for
M&A in the sector, was approximately four times
higher.1
A cautious M&A environment
M&A enthusiasm has been dampened by growing concerns around
the US-China trade dispute, Brexit and the overall health of the
global economy. The price of copper, often seen as leading
indicator of global economic activity, has declined from a high of
US$2.97 per lb in April 2019 to US$2.56 per lb in October 2019,
despite the widely expected medium-term supply side shortage. In
the gold space, the wave of consolidation that was expected to
