When you get right down to it, mining is a numbers game. And the numbers that really count are typically measured in tonnes and ounces. The reality is that the business of mining ultimately comes down to making the most of what is, in effect, a finite resource.
For more mature mines in Africa much of the expansionary activity takes place via mergers and acquisitions. Mining companies on the continent, and those wanting to diversify operations to new territories, are constantly seeking opportunities for strategic acquisitions, primarily with a view to increasing the resource reserves to which they have access.
Of course, this is largely a function of favourable market conditions. Which is why any acquisition valuation worth its proverbial salt will seek to anticipate the volatility of future commodity cycles and take a somewhat conservative approach, where on the other hand the break-even value for the buyer is set at levels of tolerance closer to where historic lows have been; while the more optimistic projections relate to historic market highs.
The second transaction that points to valuations of mines in Africa still being within the fair range is the tussle that is taking place between Impala and Northam for Royal Bafokeng Platinum.