Zero-premium mergers becoming the new normal among gold miners

Gone are the days of paying high premiums to acquire mining companies or assets.

After going through a prolonged bear market since 2013, miners have become more composed, and in this new bullish gold cycle paying a zero premium to merge two companies may become the new normal.

Deal-making among gold miners has picked up since the precious metal’s latest rally began in mid-to-late 2018. However, unlike in past bull markets, miners have been more careful to do deals that consolidate assets to minimize costs and maximize shareholder returns.