Recent Short Interest Spike Could Might Signal a Deal...

Recent Short Interest Spike Could Might Signal a Deal Incoming!

Chatree Gold Mine in Thailand could be the focus of M&A activity. A sharp rise in short interest! The number of shorted shares has surged to 4.47 million, which represents 1.73% of the float and an open short value of $6.73 million. Historically, similar patterns have emerged right before major M&A announcements in the gold mining sector.

Here’s why this matters:

• Short interest spiked before the Newmont-Newcrest, Kirkland Lake-Detour, and Agnico-Kirkland mergers — all massive deals in the mining industry. In each case, savvy traders positioned themselves for potential volatility, betting on M&A moves that would shake up the market.
• Kingsgate’s Chatree Mine is a valuable asset in the Southeast Asian gold mining landscape, and with gold prices high, it’s a prime candidate for acquisition by larger players looking to expand their portfolios.

Add to that the hiring of Dan O’Connell, a seasoned CFO with deep expertise in cross-border M&A, and the signs are strong. His past involvement in significant deals — most notably with Newcrest still Mining, which was recently acquired by Newmont Corporation — and Kingsgate could be the next big target?

The fact that short interest has risen so sharply could indicate that traders are positioning for a potential price drop post-announcement, or they may believe that an acquisition deal could be unfavorable for shareholders. Either way, this pattern mirrors several high-profile M&A deals in the past.

https://www.mining-technology.com/deals-dashboards/global-ma-activity-mining-industry/