Gold mining boss says sector lost its way, more M&A coming
Gold mining rainmaker Raleigh Finlayson is tipping the spate of deals in the sector to intensify, and is openly bullish about the outlook for the precious metal in one of the few times in his career that he has volunteered an optimistic gold forecast.
Mr Finlayson said the takeover tussle for Musgrave Minerals was likely just a taste of bigger deals and consolidation plays on the horizon in the Australian gold sector. Speaking on the eve of the Diggers & Dealers conference in Kalgoorlie, the Genesis Minerals boss was open-minded on the potential for another transaction.
Mr Finlayson declined to speculate, but Red 5 Limited has been seen as a logical target for Genesis and its heavyweight backers because its operations are close to Leonora and the Gwalia mine Genesis just acquired from St Barbara after battling it out with Silver Lake.
Genesis managing director Raleigh Finlayson speaking at Diggers & Dealers last year. Picture: Jim Ward
Securing Gwalia in a process that took far longer and invited more complexity than anticipated, was step two in an M&A strategy that started with a takeover of Dacian, whereby Genesis aims to reach a 300,000 ounce-a-year production target.
Mr Finlayson said with those deals locked away, Genesis would focus on hitting that target in the same way that turned his previous vehicle, Saracen, into a multibillion-dollar success. His conditions are that deals are accretive and sensible.
“If it takes two years to do the next deal that’s great, if it takes six months that’s great. The difference between two years and six months will be because the moons have aligned where we can do something as opposed to having to do something.”
Known for his “hope for the best, plan for worst” philosophy, Mr
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