Bullion’s rally and easing cost pressures have made assets more appealing, especially for those seeking to replace aging mines. Yet companies are signaling they’re wary of repeating errors made in a previous bull market when mega expansions left them with big debts and angry shareholders.
At an industry gathering in Colorado Springs this week, executives sought to show discipline by talking up the virtues of cutting debt, controlling costs and rewarding investors than the prospect of more M&A.
“There were some really stupid deals made last time around,” Ross J. Beaty, chairman of Equinox Gold Corp., said in an interview at the Denver Gold Forum. “Companies bought dumb stuff and were penalized for it.”
Equinox itself has drawn interest, receiving takeover offers since starting production at the new Greenstone project in Canada this year, Beaty said. He’s concerned about a hostile approach and warned that the $2.6…
