Ann: King of the Hills Final Feasibility Study progress update, page-23

(***** News) - The ongoing decline in gold reserves will continue to fuel merger and acquisition (M&A) activity in the gold mining sector in 2020, adding to the substantial trend that started in 2019, according to analysts at Bank of America Securities.
In a report published last week, the bank said that they see gold production from senior global producers falling by about 5% in the next four years. The declining production is also coupled with lower ore grades and shorter mine life.
"After years of underinvestment, we see production profiles under pressure and believe that it is inevitable there will be further M&A. We see too many mid-size ($0.5-$4.0 billion) gold vehicles with undifferentiated investment cases," the analysts said. "Thus, we see the potential for further consolidation in the global gold sector in 2020."
The expected increase in M&A activity comes after the gold mining sector saw total deals valued at $20.2 Billion in 2019, a nine-year high, the analysts said. Nearly half of the deal value last year came from the $10 billion mega-merger between Newmont and Goldcorp.
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