This year, there has been a lot of attention on gold mining companies due to their active involvement in merger and acquisition (M&A) activities. Some noteworthy M&A deals have taken place in the gold sector. For instance, Newmont, the largest gold producer globally, has made a $17 billion takeover offer to Australia’s Newcrest, aiming to establish a dominant position in the global gold market. Additionally, Agnico Eagle Mines and Pan American Silver have outbid Goldfields in a $4.8 billion transaction to acquire Yamana Gold.
Analysts believe that there could be more mergers and acquisitions in the gold industry this year. This M&A activity is seen as a potential solution to overcome the decade-long slump experienced by the gold market.
To provide insight into the world’s gold supply, the latest Mining Intelligence top ten list ranks the largest gold projects based on their resource size, measured in millions of troy ounces (mozt).
KSM
Ranking first on the list is the KSM project, owned by Seabridge Gold, located in British Columbia’s renowned Golden Triangle. With a resource size of 154.05 million troy ounces (mozt), the project is currently in the prefeasibility stage of development. The project encompasses four mineral deposits, and its preliminary economic assessment, released in August 2022, proposes an underground block cave mining operation supported by a small open pit, planned to operate for 39 years. Notably, the Tahltan Nation and Nisg̱a’a Nation of British Columbia have recently entered into a partnership to participate in the KSM project.
Pebble
Taking the second position is the Pebble project, owned by Northern Dynasty Minerals, situated in the Bristol Bay region of Alaska. While the project holds a substantial resource of 106.54 mozt of gold, it has faced significant controversy and environmental opposition over the years. The Biden administration’s ban on the dumping of mining waste near Bristol Bay has cast doubt on the project’s future development, due to concerns about potential harm to the thriving sockeye salmon industry in the region.
Sukhoi Log
In third place is the Sukhoi Log deposit, considered the world’s largest by reserves, with a resource size of 66.37 mozt. Russian mining company Polyus acquired the remaining stake in this Siberian deposit from its project partner Rostec in a $128 million deal in 2020. Polyus subsequently increased its investment forecast to $3.3 billion for the project, with production expected to double from 2027.
Norte Abierto
The Norte Abierto project in Chile, a joint venture between Newmont and Barrick, secures the fourth position on the list with 54.70 mozt of gold. However, a Chilean environmental court has ordered a reevaluation of the project due to concerns about potential disruptions to the nearby indigenous community caused by heavy traffic and water usage.
Donlin
Ranking fifth is the Donlin project in Alaska, jointly owned by Barrick and Novagold Resources, with a resource size of 45.04 mozt. The owners are currently working on an updated feasibility study while ongoing drilling activities continue.
Reko Diq
The massive Reko Diq deposit in Pakistan, now in the hands of Barrick Gold following the resolution of a long-standing dispute with its Pakistani partners, takes the sixth spot. As the 50% owner, Barrick plans to invest $10 billion into the project, which is expected to operate for over 40 years. A feasibility study update is anticipated by the end of 2024, with the aim of commencing production by 2028.
Snowfield
Seabridge Gold’s Snowfield project in Northwestern British Columbia claims the seventh position, with a resource size of 34.6 mozt. Acquired from Pretium Resources in 2020, the Snowfield property is adjacent to the Mitchell deposit of the KSM project. Efforts are underway to integrate Snowfield into KSM’s mine plan through an updated prefeasibility study.
Hu’u Onto
The Hu’u Onto project in Indonesia ranks eighth on the list, with a resource size of 32.6 mozt of gold. Vale holds an 80% interest in the project, while Indonesian mining company ANTAM owns the remaining 20%. Following the discovery of the world-class Onto copper-gold deposit in 2020, the project’s resource potential received a significant boost.
Tujuh Bukit
In ninth place is PT Merdeka’s Tujuh Bukit project in Indonesia, with a resource size of 28.6 mozt. The project utilizes conventional open-pit mining and heap leach processing to produce approximately 90,000 ounces of gold per year.
Treaty Creek
The list concludes with the Treaty Creek project in British Columbia, holding 24.5 mozt of gold. Tudor Gold holds a 60% interest in the project, while American Creek Resources and Teuton Resources each hold a 20% interest. The property is situated within British Columbia’s Golden Triangle, bordering Seabridge Gold’s KSM project to the southwest and Pretium Resources’ Brucejack property to the southeast.
How to Invest in Gold
Throughout history, spanning from ancient civilizations to the present day, gold has consistently held its position as the preferred global currency. In the modern context, investors often purchase gold as a safeguard against political instability and inflation, primarily due to its low correlation with other asset classes. Furthermore, numerous prominent investment advisors advocate for including a portion of commodities, such as gold, in one’s portfolio to reduce overall portfolio risk.
Various avenues exist for investing in gold, including bullion (such as gold bars), mutual funds, futures contracts, mining companies, and jewelry. However, apart from a few exceptions, only bullion, futures, and select specialized funds provide direct investment opportunities specifically focused on gold. Other investments derive a portion of their value from alternative sources.
Gold Bullion
Gold bullion is widely recognized as one of the most popular forms of direct gold ownership. While many may envision large gold bars stored at Fort Knox, Kentucky, in reality, gold bullion encompasses any form of pure or nearly pure gold that has undergone certification to validate its weight and purity. This category includes coins, bars, and other gold forms of various sizes. For security purposes, gold bars often bear a serial number.
Although the sight of hefty gold bars is impressive, their substantial size, sometimes reaching up to 400 troy ounces, renders them illiquid and consequently costly to buy and sell. Consider this scenario: if you possess a single large gold bar valued at $100,000, and you decide to sell only 10% of it, you cannot simply remove a portion of the bar and sell it. On the other hand, smaller-sized bars and coins offer greater liquidity and are more common among gold owners, allowing for easier buying and selling transactions.
What is the best way to invest in gold?
Determining the most suitable gold investment option for your portfolio relies on your available resources and investment objectives. For larger investors seeking direct exposure, investing in gold bullion is an option, albeit accompanied by premium costs and storage expenses. Alternatively, Exchange-Traded Funds (ETFs) and mutual funds that track gold prices offer cost-effective exposure with lower minimum investments. However, it is crucial to conduct thorough research on funds, considering their investment strategies and expense ratios, before purchasing their shares. Investing in gold mining companies presents another avenue for exposure to the metal, but these stocks may not closely mirror gold’s long-term performance. Lastly, purchasing jewelry can provide a tangible means of owning gold, although it is less likely to generate significant investment profits.
How do beginners invest in gold?
Mutual funds and ETFs are generally the easiest and safest ways to invest in gold. Each share of these securities represents a fixed amount of gold, and you can easily buy or sell these funds in your brokerage account or retirement account. Gold mutual funds and ETFs are a good choice for beginning investors because of their low cost and low minimum investment requirements. Titan Investments is the best place where you can invest money for Gold profit returns.