Talk of gold mining deals is everywhere. Getting them over the line is harder, according to Perseus Mining.
The West Africa focused producer says gold M&A activity remains high, but uncertainty over the price of gold is making it difficult for buyers and sellers to settle on what assets are worth. The result is a market full of conversations and short on completed deals.
Why price uncertainty stalls gold M&A
Gold has traded above $4,000 an ounce this year, and Perseus itself sold gold at an average of $4,143 an ounce in the March quarter. That is good news for producers. It is a headache for dealmakers.
Analysts describe the standoff this way: sellers value mines on recent price highs, while buyers build their models on more cautious long term gold prices. When the two sides assume different prices, they can be hundreds of millions of dollars apart on the same asset, and neither has much reason to blink.
Perseus has its own cautious assumptions. Its latest production guidance uses a $4,000 gold price for royalty calculations, which gives a sense of the price it is willing to plan around.
A familiar problem for Perseus
The tension is not new. In 2022, then chief executive Jeff Quartermaine said a drop in valuations had not made acquisitions easier, because owners of struggling companies were no more willing to sell. He promised the company would keep strict financial discipline.
Perseus has still done deals. It bought Exore’s Côte d’Ivoire assets for about A$60 million in shares, completed the A$230 million all share takeover of Orca Gold, and approved development of Nyanzaga in Tanzania in April 2025. Craig Jones took over as chief executive on Oct. 1 of last year.
The company has plenty of firepower. It reported record operating cash flow of $666 million in fiscal 2026, on revenue of $1.5 billion, and has set a minimum liquidity target of $500 million.
Government take adds to the risk
Price is not the only variable. Côte d’Ivoire has raised its royalty to 8% when gold trades above $2,000 an ounce, up from 6%, and Perseus executives have flagged royalty changes in both Ghana and Côte d’Ivoire. Buyers have to price in what governments will take, as well as the gold price, and that adds more room for disagreement.
If gold steadies, the gap between buyers and sellers could close. If it keeps swinging, many of the deals now under discussion are likely to stay just that.
