The mining industry has seen a surge in activity, with three major announcements in recent days from Anglo American, Codelco, Equinox Gold, Calibre Mining, and BHP. These moves highlight a strategic shift toward mergers and acquisitions (M&A), driven by record commodity prices and the global push for green energy.
- Anglo American and Codelco Strike $5B Copper Deal
On February 20, 2025, Anglo American and Chile’s state-owned Codelco announced a joint development agreement for their neighboring Los Bronces and Andina copper operations in Chile. Los Bronces is a key asset for Anglo American, while Andina is one of Codelco’s smaller operations. The partnership is expected to produce 2.7 million tons of copper over 21 years, beginning in 2030. This collaboration aims to maximize output and value, driven by rising demand for copper in renewable energy and electric vehicle technologies. Codelco’s recent moves to recover from a production slump and rising debt—including acquiring a 10% stake in Teck’s Quebrada Blanca copper mine—suggest that this partnership is part of a broader strategy to leverage private-sector collaborations.
- Equinox Gold to Buy Calibre for $1.8B
On February 24, 2025, Canada’s Equinox Gold announced it would acquire all outstanding shares of Calibre Mining in an all-stock deal. The combined company will operate 11 assets and is projected to produce over 1.2 Moz of gold annually. The deal reflects a price-to-earnings (P/E) ratio of 10x, significantly lower than the gold producers’ sector average of approximately 16x. With no premium offered and the lower-than-average P/E, we anticipate competing bids from other gold producers.
Certain companies mentioned may be covered by FRC under an issuer paid model. FRC or companies with related management, and Analysts, may hold shares/securities in some companies mentioned in this report. See the bottom of this report for other important disclosures rating, and risk definitions.
