Grapevine

Gold M&A is heating up but miners are pledging discipline

With gold prices at a record high, mining companies are back hunting for deals while trying to reassure investors that they’ve learned from past mistakes of overspending.

There has been a flurry of activity in recent months, with Gold Fields Ltd.’s $1.6 billion purchase of Osisko Mining Inc. and AngloGold Ashanti Ltd.’s $2.5 billion acquisition of Centamin Plc. That has sparked speculation over what could be next, with signs that more companies are working to ink deals.

At an industry gathering in Colorado Springs this week, executives sought to show discipline by talking up the virtues of cutting debt, controlling costs and rewarding investors rather than the prospect of more M&A.

"There were some really stupid deals made last time around," Ross J. Beaty, chairman of Equinox Gold Corp., said in an interview at the Denver Gold Forum. "Companies bought dumb stuff and were penalized for it."