Perseus Mining chief executive Craig Jones has told Reuters that gold deal talk is plentiful but signed deals are not, with buyers and sellers unable to agree on where bullion is heading. For ASX investors watching a wave of takeovers, it is a useful reality check on why so many approaches stall.
Plenty of activity, little completion
Jones, a former Newcrest executive, said there is “a lot of activity, but not necessarily a lot of completion.” His explanation was simple. Companies are still trying to work out what the gold price will do before they commit, and some boards are running aggressive price assumptions while others stay conservative. That gap makes it hard to settle on a fair value for any asset.
The comments land at a tense moment for the sector. Gold Fields’ A$38.7 billion approach for Northern Star was rebuffed as opportunistic, and the standoff has dragged on after the Gold Fields chief played down a higher offer. Elsewhere, Zijin Gold’s planned US$4 billion purchase of Allied Gold collapsed before closing.
Deals that did get done
Not every transaction has failed. Northern Star’s purchase of De Grey Mining and Ramelius Resources’ acquisition of Spartan Resources both got across the line, as did Equinox Gold’s deal for Calibre Mining and AngloGold Ashanti’s takeover of Centamin. Strong bullion prices have clearly fuelled consolidation, but the completed deals tended to be ones where both sides could live with similar price views.
Perseus itself is taking a patient route. It operates in Ghana and Cote d’Ivoire, is developing a fourth mine in Tanzania, and is spending about US$140 million on an ongoing cutback at Edikan. Jones said the company is open to deals outside Africa if they fit its mine-building skills, adding “we look everywhere.” Analysts at Canaccord Genuity have flagged Perseus as well placed to buy, with cash forecast to pass US$2 billion by the end of 2028.
What it means for investors
Gold slid through September, and the World Gold Council has tracked the price swings closely. Volatility is exactly what makes bidders cautious. Until price expectations converge, expect more rejected approaches and slow-moving talks rather than a rush of completed mergers. Company announcements on the ASX remain the place to confirm any formal bid terms, and our gold coverage will track the next moves.
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