Post/wire say Barrick, B2Gold feel decline in M&A

2013-10-16 09:34 ET - In the News

The Financial Post reports in its Wednesday edition mining acquisitions valued at less than $1-billion (U.S.) have slumped to an eight-year low as the industry's largest players rein in spending after a drop in commodities prices. A Bloomberg dispatch to the Post says the slump threatens hundreds of exploration and development companies. Being bought by a larger miner is proving increasingly elusive as giants like Barrick Gold avoid acquisitions and new projects in favour of improving existing operations. There were 76 takeovers of companies in the third quarter, with a combined valuation of $1.73-billion (U.S.), according to data compiled by Bloomberg. That is the lowest volume since the fourth quarter of 2004. Copper and zinc have dropped this year amid concerns that a Chinese economic slowdown, and gold has declined 24 per cent, heading for its first annual decline in 13 years. BHP Billiton Ltd. and Rio Tinto Group have cut billions of dollars of spending while Barrick sold three mines in October and said it may sell others to cut costs. "There are a lot of sellers and very few buyers," said Clive Johnson, chief executive officer of B2Gold, a Vancouver gold producer that is considering acquisitions.