Investing

10 Top Gold and Silver Miners May Be the Next M&A Targets

Merdeka Copper Gold

Merdeka Copper Gold is based in Jakarta and trades on the Indonesia Stock Exchange. As of December 2021, the company estimated its resources at 34.8 million ounces of gold, 76 million ounces of silver and 8.5 million metric tons (tonnes) of copper. Gold resources grew by 5.5% during the year, while silver resources declined by 12.6%.

The company’s all-in sustaining costs (AISC) of gold production were $934 per ounce in 2021, and Merdeka expects costs to fall to $825 per ounce this year. The company-realized price for gold in the March quarter of this year was $1,871. Merdeka’s market cap is approximately $8.5 billion. The company’s weighting in the MVIS Junior Gold Miners Index is 6.04%.

Pan American Silver

Canada-based Pan American Silver Corp. (NASDAQ: PAAS) reported 529.3 million ounces of proved and probable silver reserves and 4.21 million ounces of gold reserves in June of last year. The company’s largest mines are located in Central and South America. The company’s sole Canadian mine holds about 1 million ounces of gold and generated 20% of Pan American’s revenue in 2020. Peru (42%) and Mexico (28%) are the company’s largest silver producers.

In the March quarter, the company’s AISC in its silver segment was $13.41 per ounce (down from $16.99 in the year-ago quarter). Pan American’s realized price for silver was $24.03 per ounces (down from $26.41). The company’s AISC for gold rose from $1,058 per ounce in 2021 to $1,502 in the first quarter, and its realized price for gold rose from $1,788 per ounce to $1,880 per ounce. The company’s market cap is $4.65 billion. The company’s weighting in the MVIS Junior Gold Miners Index is 5.91%.

Evolution Mining

Australia-based Evolution Mining trades over the counter in the United States under the ticker symbol CAHPF. In 2020, the company paid Newmont $375 million for the larger company’s Red Lake mining complex in Canada, so Evolution may be trying to maintain its independence, but its current market cap of around $5.1 billion could be low enough to interest a bigger player.

The company’s gold reserves increased by 449,000 ounces (5%) in 2021 to around 10.3 million ounces. Evolution’s AISC for the March quarter was $717 per ounce, and the company sold its gold for $1,771 per ounce. The company’s weighting in the MVIS Junior Gold Miners Index is 5.07%.

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