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Barrick Gold Corp.’s prime government says the gold trade wants extra consolidation so it may possibly improve exploration to spice up depleting reserves, lure extra generalist buyers and enhance efficiencies.
The flurry of offers that characterised the sector prior to now two years will probably proceed, with miners in Australia already “stamping their mark” on the trade, Chief Government Officer Mark Bristow mentioned in a digital South African mining convention. Mergers and acquisitions are prone to dominate the sector in Africa, and are wanted in Canada, the place the world’s second-largest gold miner relies.
“The trade nonetheless wants additional consolidation,” Bristow mentioned Wednesday. “Canada nonetheless wants extra work on consolidation.”
Whereas there was a scramble for offers after Barrick’s 2018 mega-merger with Randgold Sources Ltd. and Newmont Corp.’s subsequent acquisition of Goldcorp Inc., offers have slowed as gold’s rally to an all-time excessive this yr pushed up the value of belongings.