DEALS ANALYSIS
Deals activity: North America leads in deal value; other commodities beat out silver
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Deals activity by geography
Mining industry deals, as captured by GlobalData’s Mining Intelligence Centre, are up year-on-year (YoY) across most regions.
North America is leading in terms of deal value, ($1,407,021m) but its 33% YoY growth has been bested by Asia-Pacific (34%). Europe has also managed to maintain positive growth, with an increase of 8%.
The volume of deals recorded by GlobalData decreased YoY however in Middle East and Africa and South and Central America, with the former seeing a decline of 16% and the latter one of 1%.
Deals activity by type
| Deal type | Total deal value (US$m) | Total deal count | YoY change (volume) |
| Equity Offering | 452242 | 23412 | 20 |
| Asset Transaction | 526788 | 10454 | -20 |
| Acquisition | 2059622 | 8999 | 20 |
| Debt Offering | 798570 | 2481 | -10 |
| Partnership | 3417 | 1378 | -74 |
| Private Equity | 62715 | 649 | 38 |
| Venture Financing | 1372 | 223 | -70 |
| Merger | 52539 | 208 | -64 |
A breakdown of deals by type and volume shows a general downtrend, with mergers down -64% YoY, partnerships down -74%, and asset transactions down -20%; acquisitions have, however, seen a 20% increase. Financing deals have seen a similar downturn, with venture financing down -70% YoY and debt offerings down -10%, although equity offerings are up 20%. Private equity has also seen good growth, with a 38% increase.
Deals activity by sector
The most notable development apparent in GlobalData’s analysis of mining industry deals by sector is the continuing strength of gold. All other sectors have retained their relative rankings by volume from the year before, though other commodities have risen above silver once more. In 2020, other commodities saw 1,390 deals, while silver saw 1,397. Other commodities have so far in 2021 accrued 249 deals, while silver has seen only 200.
Note: All numbers as of 18 March 2021. Deals captured by GlobalData cover M&As, strategic alliances, various types of financing and contract service agreements.
For more insight and data, visit GlobalData's Mining Intelligence Centre.
Latest deals in brief
Managem partners with Wanbao to develop gold mining projects in Sudan
Mining firm Managem Group has joined forces with Wanbao Mining Group to jointly develop gold mining projects in Sudan.
Under the arrangement, Managem will have a 65% stake in the exploitation and exploration license Block 15 and the associated Gabgaba gold mine and expansion project.
Australia’s Evolution Mining to buy Battle North Gold for $275m
Australian gold miner Evolution Mining has agreed to acquire Canada-based Battle North Gold for roughly $275m (C$343m).
Under the terms of the agreement, Evolution Mining will acquire all of the issued and outstanding shares of Battle North for C$2.65 ($2.12) per common share in cash.
Anglo Pacific finalises $205m cobalt stream acquisition in Canada
Anglo Pacific Group has closed the acquisition of a 70% net interest in a stream on cobalt production from Vale’s Voisey’s Bay mine in Canada, for $205m.
The all-cash deal, signed with private equity sellers in February 2021, involves a contingent payment of up to $27m.
First Majestic to acquire Jerritt Canyon Gold Mine in US
Canada-based First Majestic Silver has signed an agreement to acquire the Jerritt Canyon Gold Mine located in Nevada in the US from Sprott Mining.
First Majestic Silver will purchase issued and outstanding common shares of Jerritt Canyon Canada from Sprott Mining.
Rio Tinto signs deal with Tali for copper-gold prospects in Australia
Rio Tinto has signed a farm-in agreement with Tali Resources, a unit of Agrimin, to acquire the latter’s stake in five exploration prospective copper-gold tenements in Western Australia.
As per the farm-in and joint-venture deal with Agrimin’s 40%-owned unit Tali, Rio Tinto will acquire up to a 75% stake in the five tenements located in the West Arunta and Madura regions of the state.
Rhizen signs oncology drug development deal with Curon
Swiss biopharma company Rhizen Pharmaceuticals has signed an exclusive licensing agreement with Curon Biopharmaceutical to develop and commercialise Tenalisib for oncology in the Greater China region. Tenalisib, a highly selective dual PI3K delta and gamma inhibitor, is currently in Phase II clinical development for haematological malignancies. The US FDA granted fast track and orphan drug designations for the drug candidate Tenalisib as a treatment for relapsed/refractory peripheral T-cell lymphoma and cutaneous T-cell lymphoma.
