Gold Price Expected to Rise Further as M&A Activity Heats Up

image1 3 Gold Price Expected to Rise Further as M&A Activity Heats Up

After experiencing its strongest run in a decade last year, gold market M&A activity is continuing to ramp up with $40 billion in mergers and acquisitions (M&A) in the sector so far  in 2022.

Newmont Corporation, the world’s largest gold miner, recently launched a US$17 billion bid for rival Newcrest Mining last week, creating expectations of more consolidation to come. But Newmont’s latest bid is just one of many major deals hitting the space as producers look to replace depleting supplies at their current operations. 

Agnico Eagle Mines and Pan American Silver Corp just completed the acquisition of Yamana Gold for $4.8 billion. BHP Limited is acquiring Australian gold and copper producer OZ Mining for $6.61 billion, while B2Gold Corp just signed a deal to acquire Sabina Gold & Silver for $800 million.

If bond yields fall and interest rates rise, the gold price is anticipated to rise as the dollar’s purchasing power and consumer quality of living fall. What’s more, prolonged turmoil in global financial markets in 2023 will likely fare well for gold.

Although gold M&A deals are taking place across the globe, there seems to be a focus on projects in Canada. In Q3 2022, alone there was a total of $562.8 million worth of M&A deals in Canada including Kinross Gold acquiring Great Bear Resources for $1.44 billion, and Agnico Eagle and Kirkland Lake Gold completed a $10 billion merger to become the third-largest gold producer in the world. 

The Canadian gold mining industry also gained significant attention last spring, when billionaire gold investor Eric Sprott made his largest investment to date into early-stage exploration company New Found Gold, which he believes could uncover “the greatest gold discovery in the history of Canada.”

Another player in Canada’s gold exploration space is Fury Gold Mines (TSX:FURY) (NYSE-A:FURY), a well-funded gold exploration company located in two of Canada’s most productive mining regions: Quebec’s James Bay Region and Nunavut’s Kitikmeot Region. 

The company’s portfolio includes its flagship Eau Claire project in Quebec’s James Bay Region, its wholly-owned Lac Clarkie project next door, and the Éléonore South joint venture project with Newmont Gold, host to a large-scale high-grade untested gold-in-till anomaly with “a tremendous amount of exploration upside.”

Canadian Gold Miner Is Strategically Positioned in Two Prolific Mining Regions

Fury Gold Mines Limited (TSX:FURY) (NYSE-A:FURY) has been focusing its efforts on its flagship Eau Claire project, which is located near James Bay. Earlier this year, a preliminary economic assessment (PEA) for the project was completed, revealing an M&I Resource of 808,000 ounces (oz) of gold at 6.65 g/t Au and an additional Inferred Resource of 458,000 oz at 7.48 g/t Au.

On April 13, Fury announced that it has commenced the 2023 drill program at Eau Claire, which will comprise 10,000-15,000 meters (m) focused on the Gap Zone, Western Hinge, and North Limb targets to build on the success of the 2021 and 2022 drill programs. The company will be focused on the Western Hinge target initially to continue to expand the Eau Claire high-grade gold deposit. Fury plans to commence drilling at the Percival Prospect later in Q2 2023.

Fury‘s improved geological interpretation of the Eau Claire resource focused on the fold geometry at the Hinge Target, has resulted in an over 25% increase in the mineralized footprint. The mineralized system is still open in all directions, and intercepts of 5.75 g/t gold over 4m, 21.4 g/t gold over 1m, 5.86 g/t gold over 3.5m and 9.36 g/t gold over 3m have been returned. During 2023, the Hinge Target exploration plans will focus on expanding the mineralization footprint further to the west and updip.

Fury Gold Mines Limited (TSX:FURY) (NYSE-A:FURY) also recently provided an update on the Lac Clarkie project, which is located just east of Eau Claire. As a result of the conclusion of a B-horizon soil sampling study, the Company has defined eight gold anomalies. Six of the targets are located in the Cannard Deformation Zone, which contains numerous gold occurrences throughout its more than 100 km mapped length, including the Eau Claire Deposit and the Percival Prospect. Fury is attempting to prioritize these newly discovered targets for additional examination in 2023, with the objective of advancing a number of them to the drill-ready stage.

Fury is well-funded for planned exploration following a recent private placement for C$8.75 million in cash, C$16.2 million in treasury securities, and 59.5 million Dolly Varden Silver shares.

For more information on Fury Gold Mines Limited (TSX:FURY) (NYSE American:FURY) and its projects, please visit this link or the company’s website.

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Disclosure:

This article is issued on behalf of Fury Gold Mines Limited (“Fury”).  The article is a paid communication of Fury which is solely responsible for all factual matters about Fury contained in this article. David Rivard, P. Geo., Fury’s Exploration Manager is the qualified person who has reviewed the technical contents of this article in relation to all Quebec projects. Bryan Atkinson P.Geol., Fury’s SVP of Exploration is the qualified person who has reviewed the technical contents of this article in relation to Committee Bay. Market Jar Media Inc. has or expects to receive from Fury’s digital marketing agency (Native Ads Inc.) sixty-eight thousand and four hundred Canadian dollars in connection with the dissemination of this article. The owners and management of Native Ads and/or Market Jar do not currently own securities of Fury butmay acquire or dispose of securities in Fury from time to time without notice or restriction. Market Jar has not compensated the author of the article nor is Market Jar responsible for its contents. By opening this page, each reader accepts and agrees to Market Jar Media Inc.’s terms of us  and full legal disclaimer as set forth here. This article is not investment advice and persons interested in learning about Fury and the risks and challenges of its business should review Fury’s continuous disclosure record found at www.sedar.com.

About the author: Stephanie Bedard-Chateauneuf has over four years of experience writing financial content for various websites. Over the years, Stephanie has covered various industries, with a primary focus on consumer stocks, cannabis stocks, tech stocks, and personal finance. This stock lover likes to invest for the long-term. Stephanie has an MBA in finance.