GCG’s Q1 2022 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 continued to increase in Q1 2022 after the sector came out of a slump in Q4 2021. The Metals & Mining industry stabilized after several quarters of volatility and uncertainty, and the majority of the industry outperformed the S&P 500.
- On a 3-year period ending in March 2022, the Lithium, Precious Metals, Base Metals and Alloys, and Minerals & Mineral exploration sectors (241.0%, 107.5%, 90.2%, and 62.4%, respectively) outpaced the S&P 500, which had a 57.1% return.
- The volume of M&A activity in the Metals & Mining industry decreased to 167 deals closed in Q1 2022 after stable quarters of 204 deals closed during the prior two quarters. The average deal value (based on transactions with reported values only) interestingly increased by 32% after a slight decrease in Q4 2021. This seemingly indicates that the market is being more selective and targeting higher-end companies rather than investing in a high quantity of mid-range metals & mining companies.
Click here for the full update.