Business Insights: An Uneven M&A Picture
Different commodities, different camps, different consolidation trends
“In terms of consolidation of exploration ground and corporate activity, we have witnessed a similar trend in Western Australia's mature lithium market. However, in James Bay the exploration pipeline is primarily held by juniors, with limited involvement from majors. Consolidation may occur eventually, but it is still early in the lithium life cycle for James Bay.”
David Southam, CEO, Cygnus Metals
“Consolidation is not as simple as it sounds, as factors like relative valuations and market dynamics come into play. While consolidation presents opportunities, it also poses challenges, particularly regarding valuation negotiations.”
Francis McDonald, CEO and Director, Li-FT Power
“M&A will happen, and some juniors might divest their projects into other groups. Winsome Resources bought the Renard mine, which will expedite their projects by a couple of years at least, while Patriot is moving at full speed with Corvette….people are paying attention, but not making moves already.”
Jonathan Buick, President and CEO, Champion Electric Metals
“I believe the current high-price environment for copper and gold will significantly support the formation of joint ventures and consolidation within the industry. This is an opportune moment to advance projects. If a project is not gaining traction, now is the time to consider M&A to achieve economies of scale and better project momentum.”
Ernest Mast, CEO, Doré Copper
“Challenges persist due to the disconnect between valuations and commodity prices. I anticipate increased consolidation efforts within the industry aimed at bolstering financial strength, particularly in regions like James Bay.”
Normand Champigny, CEO, Québec Precious Metals