The Globe and Mail reports in its Wednesday edition that Canadian gold miners keen to tap new investors are eyeing secondary listings in London and New York, underscoring pent-up demand for the precious metal from generalist funds.
A Reuters dispatch to The Globe says that gold prices are up 32 per cent this year as central banks invoke stimulus measures in response to the COVID-19 pandemic.
That has fuelled a cash surge for miners, which have hiked dividends and pledged cost discipline to broaden their appeal beyond a shrinking pool of resource-only investors.
A listing in New York or London opens the door for miners' shares to be included in many more exchange-traded funds (ETFs) -- guaranteeing substantial liquidity and broadening their investor basis further.
"There is a lot of dumb money sloshing around in London in the mining space, and the gold miners want to soak it up," said Henry Steel, portfolio manager at London's Odey Asset Management.
That would help plug a large gap in the London market left by Barrick Gold's 2018 tie-up with Randgold Resources, which had been listed in London. Reuters notes that Yamana Gold and Endeavour Mining are among those weighing secondary listings.
© 2024 Canjex Publishing Ltd. All rights reserved.