During the last quarter of 2020, the mining and metals industry in North America registered a 6.98% decline in cross-border deal activity. This is according to the most recent data from analysis conducted by GlobalData, which compared numbers from 2020’s last quarter to the average of the last four quarters.
While the average of the last four quarters had 43 cross-border deals, 2020’s final quarter announced 40 cross-border deals in the region, which were valued at $2.4 billion.
With regard to all types of deals, M&A witnessed the most activity in last year’s final quarter with 38 deals, which made up a 95% share for the region. This was led by the Teranga Gold acquisition by Endeavour Mining, which was valued at $1.86 billion.
Endeavour Mining is the top gold producer in West Africa. The acquisition of Teranga Gold added another operating asset to the company’s four mines in Burkina Faso. Additionally, this acquisition provided exposure to the Massawa project in Senegal, which Teranga Gold had acquired from Barrick Gold in 2019.
The company also acquired Semafo, which would boost the company’s growth. With six operating mines in Côte d’Ivoire as well asBurkina Faso and Senegal under its belt, Endeavour Mining will be producing roughly 1.5 million ounces of gold annually.
The other deals were a venture financing deal and a private equity deal, with each deal making up 2.5% of the remaining 5% share of the cross-border deal activity for last year’s final quarter.
With regard to the value of these cross-border deals, the M&A was the first category in the metal and mining industry of Canada. It was valued at a whopping $2.39 billion while the venture financing deals totaled $1.96 million.
During last year’s final quarter, the top-five, cross-border deals in the mining and metals industry made up 97.6% of the overall value, with a total value of $2.34 billion.
GlobalData found the top-five cross-border deals of 2020’s final quarter to be the following:
- Teranga Gold’s $1.86 billion acquisition by Endeavour Mining
- Orion Mine Finance acquiring Greenstone Gold Mines GP at $225 million
- The acquisition of Imerys Talc Vermont, Imerys Talc Canada and Imerys Talc America by Magris Resources’ for $223 million
- Vangold Mining’s asset transaction deal with Endeavour Silver worth $18 million
- The $15 million asset transaction of Champion Iron with Deloitte Restructuring.
Away from cross-border mining deals, the gap between the supply and demand for nuclear energy is expected to reach a whopping one billion pounds by 2040, and Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) is working to produce higher amounts of uranium to meet that demand. The company currently occupies the enviable position of being the most prolific producer of uranium within the United States.
NOTE TO INVESTORS: The latest news and updates relating to Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) are available in the company’s newsroom at http://ibn.fm/UUUU
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