GCG’s Q2 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:
- After several quarters of continued growth, public equities across most segments of the Metals & Mining industry slightly declined in Q2 2022 amid ongoing fears of recession and rising inflation. Although the industry experienced a decrease in the public market, the majority of public equities in the sector continue to outperform the S&P 500.
- Investors look at commodities like metals as hedges against inflation, and confidence in the Fed’s policies to combat inflation along with further clarity surrounding the war in Ukraine have resulted in a normalization in the public market performance of Metals and Mining companies. As the world comes out of a shortage of commodities, the increased supply compared to lower demand has caused prices of metals to return to normal levels.
- The volume of M&A activity in the Metals & Mining industry decreased to 150 deals closed in Q2 2022, following the downward trend that was established in the second quarter of 2021. While volume has slightly decreased, average deal value (based on transactions with reported values only) increased to $187.4M which is the highest average value for deals over the last year.
Click here for the full update.