GCG’s Q4 2021 Metals & Mining Industry Update provides an overview of the latest trends in the sector, including recent performance, valuation multiples, and the state of the middle-market M&A environment.
Key findings include the following:
- Public equities across most segments of the Metals & Mining industry increased in Q4 2021 after a slight decrease in Q3. The Metals & Mining industry has continued to benefit from the economic rebound, but the market appears to be headed towards stabilization after several quarters of volatility.
- On a 3-year period ending in December 2021, the Lithium and Precious Metals sectors (260.4% and 94.2%, respectively) have outpaced the S&P 500, which has had an 88.2% return.
- The volume of M&A activity in the Metals & Mining industry has continued its downward trend, with 182 deals closed in Q4 2021, compared to 227 during the prior quarter. The average deal value (based on transactions with reported values only) also decreased by approximately 40% after two consecutive quarters of substantial increase. This may indicate that the market is changing its approach from targeting higher-end companies to more mid-range metals & mining companies.
Click here for the full update.