The plunge in spot gold to a five-year low has presented the gold industry with a rare and golden opportunity for mergers and acquisitions. According to data compiled by Bloomberg, gold producers are poised to continue the wave of M&A deals that have reached their highest level in three years. After all, the weakening gold price has significantly reduced asset valuations, thereby substantially lowering acquisition costs for major companies.

Bloomberg’s data show that, In the six months ending June 30, the total value of proposed or completed M&A deals reached US$9.6 billion, representing a 7% increase from the previous quarter. Gold producers, including Oceanagold Corporation, have all reached acquisition agreements.

Last Thursday, Ocean Gold agreed to acquire Roma Mining for C$856 million, gaining controlling interest in the South Carolina project. This transaction marks Ocean Gold’s second mining deal of the year.

The data shows that, Last year, the total value of mergers and acquisitions involving gold miners reached $22.3 billion, the highest level since 2011.

Canaccord Genuity Group Inc. Sydney-based analyst Reg Spencer said, “I expect this wave of themed M&A deals to continue. From an M&A perspective, the next wave of activity could see even more mergers.”

Spencer It was also pointed out that “unless smaller enterprises unite and rapidly grow in size, they will find their ability to compete weakened when opportunities for available assets arise.”

Australia could be the next hotspot for mergers and acquisitions involving gold companies. The country’s gold producers held their annual three-day conference on Monday in Kalgoorlie, an inland city in Australia. According to data from Bloomberg, Over the past 12 months, Australian gold producers have proposed or completed merger and acquisition deals totaling US$4.5 billion. Australia is the world’s second-largest gold producer, after China.