The strong market dynamics leading to increased mergers and acquisitions (M&A) in 2024 have carried over into this year, with the first half of 2025 seeing higher metals and mining M&A on the ASX and internationally.
The most recent major M&A transaction is Anglo American’s zero-premium merger with Teck Resources, creating a copper-focused major with 62.4 per cent held by Anglo and 37.6 per cent by Teck.
Once the merger is complete, the resulting copper company will benefit from Teck’s robust operational assets, such as QB2 in Chile (60 per cent interest), and others, including Highland Valley Copper in Canada (90 per cent) and Antamina in Peru (22.5 per cent), which is one of the lowest-cost copper-zinc mines globally.
Teck’s project pipeline includes high-return developments, including San Nicolas in Mexico (50 per cent) and Zafranal in Peru (80 per cent), while deeper options include Galore Creek in Canada and Nueva Union in Chile.
Teck formed joint venture agreements across all of its copper projects, reducing its single-project exposure.
Other international copper deals from earlier in the year include the $160-million takeover of Mongolia-focused developer Xanadu Mines by Singapore’s Bastion Mining and copper developer New World Resources entering into a scheme implementation deed with London-listed Central Asia Metals.
Mining M&A in Western Australia continued to surge during the first half of the 2024-25 financial year, according to global law firm Ashurst, underpinned by record gold prices and a strong deal-making appetite.
Australian gold miners were already benefiting from market conditions conducive to profitability. Key indicators of the emerging bull market included a surge in M&A, a rapidly rising gold price, and a decreasing oil price.
A subsequent weakening of the Australian dollar has further boosted the market advantage for Australian gold producers.
The M&A spend in Australia typically does not exceed US$3 billion a year, but in 2023 the spend surged to more than US$30 billion and continued strongly into 2024.
Ben Stewart, M&A Partner at Ashurst, said gold companies had led activity on a range of deals and the precious metal was dominating the WA mining sector’s deals landscape.
He said: “Over $20 billion in local WA mining sector takeovers were announced or have been completed since the start of the 2025 calendar year – gold has been a standout.”
Significant recent M&A activity includes Northern Star’s $5-billion acquisition of De Grey Mining, Gold Fields’ $3.7-billion buyout of Gold Road Resources, and Ramelius Resources’ $2.4-billion merger with Spartan Resources.
Other major deals in the last few years include Westgold Resources’ acquisition of Karora Resources for more than $1.2 billion, and Red 5’s merger with Silver Lake Resources to form the $2.2-billion Vault Minerals.
The increase in mergers and acquisitions follows what has been termed the largest gold merger in history: Newmont’s 2023 acquisition of Newcrest for $26 billion.
Ashurst anticipates that gold consolidation will persist, as lithium miners seek capital to take advantage of an expected price rebound, while sustained demand for copper is propelled by the energy transition.
Stewart added: “We predict further consolidation of mid-size gold miners where there are operational or geographical synergies.
“Given the importance of copper in the transition to new energy, we are not surprised to see high levels of interest in copper projects both in Australia and abroad.”
Precious metals mergers and acquisitions are being driven not only by gold but also by silver, exemplified by Pan American Silver’s completion of its US$2.1 billion acquisition of MAG Silver in early September.
This resulted in the formation of a formidable major in the silver sector, marking a significant consolidation in the wider precious metals sector.
The strategic merger combined complementary assets and expertise while strengthening Pan American’s position across the Americas – notably, the transaction is expected to reshape the silver market squeeze landscape.
The $2.1-billion deal includes a US$500-million cash component and the remainder in Pan American shares.
MAG Silver shareholders were offered two options for consideration, US$20.54 cash per share or $0.0001 cash plus 0.755 Pan American shares per MAG share.
The uptick in M&A extends abroad, with recent transactions including Torex Gold Resources’ CAN$499 million takeover of Prime Mining in Mexico and McEwen Mining’s planned acquisition of Canadian Gold Corp.
NASDAQ-listed Royal Gold is also in the process of acquiring New York-listed Sandstorm Gold for US$3.5 billion and Toronto-listed Copper Corp for US$196 million.
The acquisition comprises the 44-year-old precious metals streaming and royalty company acquiring Sandstorm’s issued share capital in exchange for Royal Gold shares at an exchange ratio of 0.0625.
This ratio implies a premium of 21 per cent based on the 20-day volume weighted average price (VWAP) and 17 per cent based on the closing price of Sandstorm shares on the New York Stock Exchange on 3 July 2025.
Bill Heissenbuttel, Chief Executive Officer at Royal Gold, said the transactions were expected to add significantly to Royal Gold’s diversified portfolio of precious metal stream and royalty interests.
He said: “Royal Gold has a 40-plus year history of consistently executing a strategy of disciplined growth in gold, and the addition of the Sandstorm and Horizon assets will create a global portfolio of precious metals interests that is unmatched in terms of asset diversification, development and organic growth potential, and exploration optionality.
“These characteristics will position Royal Gold as the go-to vehicle for investors seeking precious metals exposure in the US marketplace, and we welcome Sandstorm shareholders to participate in the formation of the premier growth company in our sector.”
