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The Advertiser
6 days ago
- Business
- The Advertiser
Rivers of gold pour into Kalgoorlie for mining forum
Mining has always been an industry of boom and bust. The fickle fortunes of Australia's biggest export sector were clear to see on opening day of the annual Diggers and Dealers conference on Monday. With bullion prices sitting at record highs, goldminers Evolution and Ramelius Resources could scarcely conceal their glee as they boasted to investors, analysts and rivals of the rivers of cash flowing their way. Just a few years ago, Ramelius was targeting an ore grade of two grams per tonne and making good money, chief executive Mark Zeptner said. Today, following its merger with Simon Lawson-founded Spartan Resources, it's hitting an average grade of three grams of gold per tonne of ore mined. "So it's fair to say at a three gram per tonne head grade and the current gold price, we are killing it," Mr Zeptner said, grinning. After "sparring" with Mr Lawson in the past year or so, the pair find themselves at the helm of one of the ASX's largest goldminers following a $2.5 billion merger. Mr Zeptner said he would handle the "boring" financial operations of the new joint entity - "that is if you find ridiculous cash flows boring" - while Mr Lawson, who has stayed on as deputy chairman, said he was content to focus on exploration. "Mark and I, after stopping sparring, agreed that it would be a great combination to bring that skill set together, that operational excellence and that exploration upside … hopefully, that sizzle," he said. Mr Lawson is a rockstar in the WA Goldfields town of Kalgoorlie, which is hosting the mining forum for a 34th time. The price of gold has almost doubled in less than three years to nearly $5200 an ounce, flooding the coffers of miners. Following the Ramelius-Spartan tie-up and Northern Star's $5 billion takeover of De Grey Mining, there is still plenty of M&A appetite in the sector. Miners attending the forum are sitting on astronomical cash and bullion reserves, with five companies - Northern Star, Ramelius, Evolution, Vault and Regis - on more than $500 million each, according to gold mining consultants Surbiton Associates. "Perhaps they could be used for further acquisitions, although prices now paid to obtain such new assets are very high," director Sandra Close said. "The concern is that the larger the cash reserves become, the more the company may become a tempting takeover target." But things were less rosy for uranium miners Paladin and Boss Energy. The short seller targets were the first miners to present on Monday and had a tough story to sell. Falling uranium prices have smashed share valuations, while Paladin and Boss have suffered output downgrades at their Langer Heinrich and Honeymoon mines, respectively. Additionally, hopes for an Australian nuclear power industry to boost demand for the radioactive ore were dashed when the Peter Dutton-led coalition, which championed the policy, was trounced at the May election. But governments globally were looking increasingly favourably at uranium to power their energy needs; a promising prospect for the industry, outgoing Boss Energy chief executive Duncan Craib said. "Australia has a once-in-a-generation opportunity to contribute in achieving net zero and capitalise on the inevitable surge of global uranium demand that will accompany it," he said. Despite his bullish comments, Mr Craib shied away from the media pack, avoiding the customary question-and-answer with journalists following his presentation. There was plenty of support for nuclear energy in the event's curtain-raiser, a panel discussion between Canadian nuclear advocate Chris Keefer, Centre for Independent Studies energy expert Aidan Morrison and the right-wing think tank's executive director Tom Switzer. Australia's best shot at reducing carbon emissions in electricity generation remained nuclear power, but even then it would not be possible to achieve net zero by 2050, Mr Morrison said. Mining has always been an industry of boom and bust. The fickle fortunes of Australia's biggest export sector were clear to see on opening day of the annual Diggers and Dealers conference on Monday. With bullion prices sitting at record highs, goldminers Evolution and Ramelius Resources could scarcely conceal their glee as they boasted to investors, analysts and rivals of the rivers of cash flowing their way. Just a few years ago, Ramelius was targeting an ore grade of two grams per tonne and making good money, chief executive Mark Zeptner said. Today, following its merger with Simon Lawson-founded Spartan Resources, it's hitting an average grade of three grams of gold per tonne of ore mined. "So it's fair to say at a three gram per tonne head grade and the current gold price, we are killing it," Mr Zeptner said, grinning. After "sparring" with Mr Lawson in the past year or so, the pair find themselves at the helm of one of the ASX's largest goldminers following a $2.5 billion merger. Mr Zeptner said he would handle the "boring" financial operations of the new joint entity - "that is if you find ridiculous cash flows boring" - while Mr Lawson, who has stayed on as deputy chairman, said he was content to focus on exploration. "Mark and I, after stopping sparring, agreed that it would be a great combination to bring that skill set together, that operational excellence and that exploration upside … hopefully, that sizzle," he said. Mr Lawson is a rockstar in the WA Goldfields town of Kalgoorlie, which is hosting the mining forum for a 34th time. The price of gold has almost doubled in less than three years to nearly $5200 an ounce, flooding the coffers of miners. Following the Ramelius-Spartan tie-up and Northern Star's $5 billion takeover of De Grey Mining, there is still plenty of M&A appetite in the sector. Miners attending the forum are sitting on astronomical cash and bullion reserves, with five companies - Northern Star, Ramelius, Evolution, Vault and Regis - on more than $500 million each, according to gold mining consultants Surbiton Associates. "Perhaps they could be used for further acquisitions, although prices now paid to obtain such new assets are very high," director Sandra Close said. "The concern is that the larger the cash reserves become, the more the company may become a tempting takeover target." But things were less rosy for uranium miners Paladin and Boss Energy. The short seller targets were the first miners to present on Monday and had a tough story to sell. Falling uranium prices have smashed share valuations, while Paladin and Boss have suffered output downgrades at their Langer Heinrich and Honeymoon mines, respectively. Additionally, hopes for an Australian nuclear power industry to boost demand for the radioactive ore were dashed when the Peter Dutton-led coalition, which championed the policy, was trounced at the May election. But governments globally were looking increasingly favourably at uranium to power their energy needs; a promising prospect for the industry, outgoing Boss Energy chief executive Duncan Craib said. "Australia has a once-in-a-generation opportunity to contribute in achieving net zero and capitalise on the inevitable surge of global uranium demand that will accompany it," he said. Despite his bullish comments, Mr Craib shied away from the media pack, avoiding the customary question-and-answer with journalists following his presentation. There was plenty of support for nuclear energy in the event's curtain-raiser, a panel discussion between Canadian nuclear advocate Chris Keefer, Centre for Independent Studies energy expert Aidan Morrison and the right-wing think tank's executive director Tom Switzer. Australia's best shot at reducing carbon emissions in electricity generation remained nuclear power, but even then it would not be possible to achieve net zero by 2050, Mr Morrison said. Mining has always been an industry of boom and bust. The fickle fortunes of Australia's biggest export sector were clear to see on opening day of the annual Diggers and Dealers conference on Monday. With bullion prices sitting at record highs, goldminers Evolution and Ramelius Resources could scarcely conceal their glee as they boasted to investors, analysts and rivals of the rivers of cash flowing their way. Just a few years ago, Ramelius was targeting an ore grade of two grams per tonne and making good money, chief executive Mark Zeptner said. Today, following its merger with Simon Lawson-founded Spartan Resources, it's hitting an average grade of three grams of gold per tonne of ore mined. "So it's fair to say at a three gram per tonne head grade and the current gold price, we are killing it," Mr Zeptner said, grinning. After "sparring" with Mr Lawson in the past year or so, the pair find themselves at the helm of one of the ASX's largest goldminers following a $2.5 billion merger. Mr Zeptner said he would handle the "boring" financial operations of the new joint entity - "that is if you find ridiculous cash flows boring" - while Mr Lawson, who has stayed on as deputy chairman, said he was content to focus on exploration. "Mark and I, after stopping sparring, agreed that it would be a great combination to bring that skill set together, that operational excellence and that exploration upside … hopefully, that sizzle," he said. Mr Lawson is a rockstar in the WA Goldfields town of Kalgoorlie, which is hosting the mining forum for a 34th time. The price of gold has almost doubled in less than three years to nearly $5200 an ounce, flooding the coffers of miners. Following the Ramelius-Spartan tie-up and Northern Star's $5 billion takeover of De Grey Mining, there is still plenty of M&A appetite in the sector. Miners attending the forum are sitting on astronomical cash and bullion reserves, with five companies - Northern Star, Ramelius, Evolution, Vault and Regis - on more than $500 million each, according to gold mining consultants Surbiton Associates. "Perhaps they could be used for further acquisitions, although prices now paid to obtain such new assets are very high," director Sandra Close said. "The concern is that the larger the cash reserves become, the more the company may become a tempting takeover target." But things were less rosy for uranium miners Paladin and Boss Energy. The short seller targets were the first miners to present on Monday and had a tough story to sell. Falling uranium prices have smashed share valuations, while Paladin and Boss have suffered output downgrades at their Langer Heinrich and Honeymoon mines, respectively. Additionally, hopes for an Australian nuclear power industry to boost demand for the radioactive ore were dashed when the Peter Dutton-led coalition, which championed the policy, was trounced at the May election. But governments globally were looking increasingly favourably at uranium to power their energy needs; a promising prospect for the industry, outgoing Boss Energy chief executive Duncan Craib said. "Australia has a once-in-a-generation opportunity to contribute in achieving net zero and capitalise on the inevitable surge of global uranium demand that will accompany it," he said. Despite his bullish comments, Mr Craib shied away from the media pack, avoiding the customary question-and-answer with journalists following his presentation. There was plenty of support for nuclear energy in the event's curtain-raiser, a panel discussion between Canadian nuclear advocate Chris Keefer, Centre for Independent Studies energy expert Aidan Morrison and the right-wing think tank's executive director Tom Switzer. Australia's best shot at reducing carbon emissions in electricity generation remained nuclear power, but even then it would not be possible to achieve net zero by 2050, Mr Morrison said. Mining has always been an industry of boom and bust. The fickle fortunes of Australia's biggest export sector were clear to see on opening day of the annual Diggers and Dealers conference on Monday. With bullion prices sitting at record highs, goldminers Evolution and Ramelius Resources could scarcely conceal their glee as they boasted to investors, analysts and rivals of the rivers of cash flowing their way. Just a few years ago, Ramelius was targeting an ore grade of two grams per tonne and making good money, chief executive Mark Zeptner said. Today, following its merger with Simon Lawson-founded Spartan Resources, it's hitting an average grade of three grams of gold per tonne of ore mined. "So it's fair to say at a three gram per tonne head grade and the current gold price, we are killing it," Mr Zeptner said, grinning. After "sparring" with Mr Lawson in the past year or so, the pair find themselves at the helm of one of the ASX's largest goldminers following a $2.5 billion merger. Mr Zeptner said he would handle the "boring" financial operations of the new joint entity - "that is if you find ridiculous cash flows boring" - while Mr Lawson, who has stayed on as deputy chairman, said he was content to focus on exploration. "Mark and I, after stopping sparring, agreed that it would be a great combination to bring that skill set together, that operational excellence and that exploration upside … hopefully, that sizzle," he said. Mr Lawson is a rockstar in the WA Goldfields town of Kalgoorlie, which is hosting the mining forum for a 34th time. The price of gold has almost doubled in less than three years to nearly $5200 an ounce, flooding the coffers of miners. Following the Ramelius-Spartan tie-up and Northern Star's $5 billion takeover of De Grey Mining, there is still plenty of M&A appetite in the sector. Miners attending the forum are sitting on astronomical cash and bullion reserves, with five companies - Northern Star, Ramelius, Evolution, Vault and Regis - on more than $500 million each, according to gold mining consultants Surbiton Associates. "Perhaps they could be used for further acquisitions, although prices now paid to obtain such new assets are very high," director Sandra Close said. "The concern is that the larger the cash reserves become, the more the company may become a tempting takeover target." But things were less rosy for uranium miners Paladin and Boss Energy. The short seller targets were the first miners to present on Monday and had a tough story to sell. Falling uranium prices have smashed share valuations, while Paladin and Boss have suffered output downgrades at their Langer Heinrich and Honeymoon mines, respectively. Additionally, hopes for an Australian nuclear power industry to boost demand for the radioactive ore were dashed when the Peter Dutton-led coalition, which championed the policy, was trounced at the May election. But governments globally were looking increasingly favourably at uranium to power their energy needs; a promising prospect for the industry, outgoing Boss Energy chief executive Duncan Craib said. "Australia has a once-in-a-generation opportunity to contribute in achieving net zero and capitalise on the inevitable surge of global uranium demand that will accompany it," he said. Despite his bullish comments, Mr Craib shied away from the media pack, avoiding the customary question-and-answer with journalists following his presentation. There was plenty of support for nuclear energy in the event's curtain-raiser, a panel discussion between Canadian nuclear advocate Chris Keefer, Centre for Independent Studies energy expert Aidan Morrison and the right-wing think tank's executive director Tom Switzer. Australia's best shot at reducing carbon emissions in electricity generation remained nuclear power, but even then it would not be possible to achieve net zero by 2050, Mr Morrison said.
Reuters
17-03-2025
- Business
- Reuters
Aussie gold miner Ramelius to take over Spartan in $1.5 bln deal
March 17 (Reuters) - Australia's Ramelius Resources ( opens new tab will take over smaller peer Spartan Resources ( opens new tab, valuing the miner at A$2.4 billion ($1.5 billion) on a debt-free basis, as rising bullion prices drive a wave of consolidation in the sector. Under the terms of the agreement, Ramelius, which already owns a 19.9% stake in Spartan, will acquire the remaining shares which would result in a A$4.2 billion gold-producing entity, the companies said on Monday. Ramelius is offering A$0.25 in cash and 0.6957 of its own shares for each Spartan share it does not already hold. Shares in Ramelius dropped 3.4% after open while those in Spartan rose over 9%. The deal follows a sharp rise in gold prices, with Australian-dollar gold hitting a record high above A$4,240 per troy ounce in late October. Prices have rallied by around a third over the past year, supporting increased merger and acquisition activity across the industry. Ramelius announced a trading update last week, where the miner flagged lower-than-expected production, higher costs and capital expenditure at its Mount Magnet gold mine. Ramelius Managing Director Mark Zeptner said the merger would "supercharge" production at the company's Mount Magnet operations by incorporating Spartan's Dalgaranga mineral resource. "The combination will see Mount Magnet deliver higher ounces, at higher grade, with higher margins," Zeptner said. He added that Ramelius has a vision for the combined group to produce over 500,000 ounces of gold annually by fiscal 2030. Analyst Arun George of Smartkarma noted the merger is expected to generate synergies through greater production scale and reduced costs. "By adding ore to Mount Magnet, Spartan could fix Ramelius' near-term production gap," he said. Shareholders of Spartan will own 39.5% of the newly merged company while Ramelius will have the rest of the stake. Spartan's executive chair, Simon Lawson, will join the combined firm's board as a non-executive deputy chair. Spartan's board has already backed the merger deal, asking investors to vote in its favour. Ramelius has been actively pursuing acquisitions to bolster its portfolio, following challenges at its ageing Edna May mine. Previous takeover attempts included a failed bid for Karora Resources, which was ultimately acquired by Westgold Resources ( opens new tab, and a separate unsuccessful A$3 billion approach to merge with Westgold. ($1 = 1.5805 Australian dollars)
