Gold hits new record as Ramelius buys out Spartan

Gold prices surged past $US3000 per ounce for the first time on Friday, driven by rising investor demand for safe-haven assets amid ongoing economic uncertainty.

Forex market analyst Fawad Razaqzada attributed the rally to concerns over US President Donald Trump’s escalating tariff war, which has rattled financial markets.

“Traders will keep a close eye on the ongoing trade war between the US and much of the world for potential market signals,” he said.

“In the coming week, three major central banks are set to announce rate decisions, though it remains uncertain whether any significant policy shifts will occur. Should any of them adopt a more dovish stance than expected, it could provide further support for the gold forecast.”

He added that a weaker US dollar, coupled with softer economic data, has also played a role in gold’s strength.

For Australian investors, record-breaking prices comes amid a major consolidation move in the local gold sector.

Ramelius Resources is set to acquire the remaining Spartan Resources shares it does not already own in a deal worth approximately $2.4 billion.

Under the agreement, Spartan shareholders will receive $0.25 in cash and 0.6957 Ramelius shares per Spartan share, implying a value of $1.78 per share.

The offer represents an 11.3 per cent premium to Spartan’s last closing price of $1.60 on March 14 and a 27.5 per cent premium to its 30-day volume-weighted average price of $1.40.

Spartan is currently developing the Dalgaranga gold project in Western Australia, which includes a carbon-in-leach processing facility and extensive landholding with exploration upside.

The site produced 71,150 ounces of gold in 2021–22 financial year (FY22) before being placed on care and maintenance in November 2022 due to grade and reconciliation issues.

With gold prices at record highs and Ramelius expanding its production portfolio, Australian gold miners are well-positioned to capitalise on strong market conditions.