Gold futures in New York hit $4,000 per ounce for the first time, surging over 50% this year. Spot gold reached a record high at $3,976.94 per ounce.

Gold futures in New York hit $4,000 per ounce for the first time, surging over 50% this year. Spot gold reached a record high at $3,976.94 per ounce.

Gold prices have surged to unprecedented levels, with futures in New York hitting $4,000 per ounce for the first time, marking a 50% increase year-to-date. Spot gold reached a record high at $3,976.94 per ounce . This significant uptick in gold prices has sparked a wave of mergers and production expansions in the mining sector.

Predictive Discovery Ltd (ASX: PDI) and Robex Resources Inc (ASX: RXR) have announced plans to merge, creating a West Africa-focused gold company valued at over $2 billion. The merger, which will see Predictive Discovery acquire all shares of Robex, aims to combine two of the largest and most advanced gold development projects in West Africa . The combined company is expected to have a production capacity of over 400,000 ounces per annum by 2029, with combined mineral resources of approximately 9.5 million ounces of gold and combined ore reserves of approximately 4.5 million ounces . This merger is expected to further de-risk the flagship Bankan Project and deliver enduring value for shareholders, the communities where they operate, and Guinea as a whole.

Meanwhile, Contango (NYSE American: CTGO) has announced successful completion of its third production campaign for 2025 at the Peak Gold JV, yielding approximately 17,000 ounces of gold. This campaign, which processed 287,000 tons of ore with a 92.5% gold recovery rate, significantly exceeded the company's original guidance of 15,000 ounces . Contango's strong gold output and efficient ore processing have led to a $33 million cash distribution, bringing year-to-date distributions to $87 million. The company aims to triple its production from 60,000 to 200,000 gold equivalent ounces over five years through the development of the Lucky Shot and Johnson Tract projects .

These developments reflect the broader trend of gold miners responding to high gold prices by increasing production and consolidating operations to enhance scale and efficiency. As gold prices continue to rise, investors can expect more mergers and production expansions in the sector, driven by the desire to capture the increased value of gold.