On the road again?

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Global Mining 2011 Deals Review & 2012 Outlook

The sound of voices predicting the end of the commodity super cycle that began at the start of this millennium reached a crescendo pitch during 2011. The end of China. The end of India. The end of the nuclear age. The end of the American dream. The end of the Euro. With each of these expected ends, markets assumed a necessary end to the demand for mining resources.

Our theme this year, “On the road again?” borrowed from American philosopher and musician Bob Dylan, is a reference to the brazen wisdom demonstrated by the mining community in 2011, so confident in the long term fundamentals that, for the most part, these critical voices were drowned out. Global mining M&A activity increased 33% over the prior year and nearly hit a record high. Buyers were plentiful, bidding wars ensued and valuations were high. Not at all the kinds of behaviours expected in a cyclical downturn. Our annual M&A year in review revisits the 2011 trends: who was buying and selling, what resources were sought out, what drove deal premiums and, of increasing importance, what the differences were in buying behaviours between developed and growth market buyers.

Despite falling commodity prices, 2011 saw more than 2,600 M&A deals — worth $149 billion — announced in the global mining sectors. This is 33% higher than 2010 and Canadians led the charge — 30% of all global mining acquisitions involved a Canadian buyer. The report highlights 2011 deal metrics and tally, and also presents the findings of a detailed geographic analysis revealing that geographic clustering remains prevalent in the mining sector. Read the report to learn more about mining deals in 2011 and the outlook for 2012.

Previous reports:

	Riders on the Storm... Global mining deals 2011 mid-year update (1.58 MB) Download the full PDF.
	Global Mining Deals 2010 (1.34 MB) Download the full PDF.