[miningmx.com] – THE world’s largest gold miners may seize on low valuations for the sector to help acquire better assets than those they sold during last year’s period of portfolio restructuring, said Bloomberg News.
Citing comments by Paul Knight, an investment banker for Barclays, Bloomberg News said gold mining companies were at their cheapest relative to book value in at least two decades.
“Majors who have done portfolio optimisation will look at some of the juniors and say, “Here’s a chance for us to acquire a potentially better asset than we’ve sold and to mitigate the loss of production,’’ Knight told Bloomberg News.
There were $10.1bn of deals involving gold producers last year which is less than in 2012 and the smallest since 2004, said Bloomberg News citing its own data.
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