Thriving gold miners seek new listings in London and New York

Gold miners are increasingly looking towards new avenues of venture capital on the London and New York stock exchanges as they seek to take advantage of surging prices and demand for the safe haven investment.

The COVID-19 pandemic has chiefly fuelled a 32% rise in the gold price this year as central banks continue to dole out stimulus packages to protect creaking economies. The soaring gold price has boosted cash revenues for miners, who have increased dividends and pledged to invest in exploration.

A large proportion of these companies are already listed on the Toronto Stock Exchange, but a listing in London or New York would allow them to be included in more exchange-traded funds (ETFs), thus guaranteeing substantial liquidity and further broadening their investor bases.

Canada’s Endeavour Mining and Yamana Gold Inc are among those seeking secondary listings. In July, Yamana applied for a secondary listing on the London Stock Exchange (LSE), which it said lacked sizeable pure-play gold producers with annual production of one million ounces or more.

“[There is] a good hand-to-glove fit of what is being looked for by investors and what we can offer,” Yamana’s executive chairman Peter Marrone said in an interview.

This kind of high-profile listing would help plug a gap in the London market left by Barrick Gold’s merger with Randgold Resources in late 2018. Randgold left the LSE as a consequence of the tie-up.