Gold Mining Deals May Rebound Due to Discounted Price

Gold Mining Deals May Rebound Due to Discounted Price (Bloomberg)

Investment bankers predict a rebound in gold-mining deals this year from a near-decade low in 2013 as producers target assets at fire-sale prices after a plunge in the price of the precious metal. Gold-mining companies are deeply discounted relative to book value compared to the last two decades, according to data compiled by Bloomberg. Meanwhile, producers may be enticed to replace some lost output due to the sale or reduced production if less-profitable mines, said Barclays Plc’s Paul Knight. There were roughly $10.1 billion of deals among gold producers last year, according to data compiled by Bloomberg. That drop measures 4.4 percent less than in 2012 and the smallest since 2004.

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Paul Dykewicz is the editor of StockInvestor.com and the editorial director of Eagle Financial Publications in Washington, D.C. He writes and edits for the website, as well as edits investment newsletters, time-sensitive trading alerts and other reports published by Eagle. He also is an accomplished, award-winning journalist who has written for Dow Jones, USA Today and other publications, as well as served as business editor of a daily newspaper in Baltimore. In addition, Paul is the author of the inspirational book, "Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain." He received his MBA in finance from Johns Hopkins University, where he was a two-time president of the school's Finance Club. In addition, Paul has a bachelor's degree from the University of Michigan and a master's degree in journalism from Michigan State University. Outside of work, Paul volunteers with a faith-based organization to assist the poor in Southeast Washington, D.C., to learn personal finance skills to lift themselves out of debt.