(May 5): Australian gold miner Regis Resources Ltd has agreed to buy Vault Minerals Ltd in an all-share transaction that they said values the combined entity at about A$10.7 billion and will attract a wider range of shareholders.
The new entity will overtake Evolution Mining Ltd to become Australia’s third-largest gold producer by market capitalisation. Vault shareholders will receive 0.6947 new fully paid ordinary shares in Regis for each share held, the companies said in a joint statement.
Dealmaking in the gold sector has increased in recent years as prices of the precious metal soared. Bullion has almost doubled over the past two years, trading near US$4,500 an ounce on Tuesday. Vault was itself formed after two Australian miners consolidated assets in 2024.
The combined company will remain headquartered in Perth, Western Australia, and be headed by Regis CEO Jim Beyer.
“The merged company becomes materially more relevant to the global gold investment universe,” Beyer said on a call with investors on Tuesday. “This increased scale materially improves our trading liquidity, supporting large and longer-term institutional participation.”
See also: Ex-Rio Tinto boss to list seabed mining firm in US$1 bil deal
The merger will create a miner with annual gold production of more than 700,000 ounces, the companies said. Regis shareholders will own approximately 51% and Vault shareholders about 49% of the combined entity.
The companies also expect to realise around A$500 million in corporate tax savings, along with operational benefits.
Shares in Regis fell as much as 7.1% in Sydney while the target Vault rose more than 6%. Regis shares closed at A$7.17 on Monday, valuing the company at A$5.4 billion, while Vault settled at A$4.50, making it worth about A$4.7 billion.
See also: Unearthing mining companies of value
The deal follows a raft of mergers and acquisitions in recent years, which saw Northern Star Ltd buy De Grey Mining Ltd, Gold Fields Ltd acquire Gold Road Resources Ltd and Ramelius Resources Ltd combine with Spartan Resources Ltd.
While large mergers reduce the options left on the table, there will likely be further deals this year, Tim McCormack, senior mining analyst at Canaccord Genuity Australia Ltd, said by email Tuesday.
“There is still plenty of valuation bifurcation among the established producers and a number of well-advanced developers trading at big discounts to fair value, which in my view, should see mergers and acquisitions continue,” he said.
Uploaded by Arion Yeow
