Toronto's charm fades, gold miners turn to London and New York listings

Update: 20-08-2020

Foreign news agency news on August 19 that Canadian gol […]

Foreign news agency news on August 19 that Canadian gold miners eager to attract new investors have set their sights on secondary markets in London and New York, which highlights the demand for precious metals from generalist funds.
Due to the stimulus measures taken by central banks in response to the new crown pneumonia pandemic, the price of gold has soared by 32% so far this year.
The sharp rise in the price of gold has brought a surge in cash to miners. They have also increased their dividends and promised to abide by cost discipline in order to expand its attractiveness and make it not limited to resource-poor investors.
Listing in New York or London provides the door for more exchange-traded funds (ETFs) (including mining stocks)-ensuring ample liquidity and further broadening the investor base.
Henry Steel, the London-based portfolio manager of Odey Asset Management, a London-based asset management company that manages $4.9 billion in assets, said: "London has a lot of "dumb money" wandering around in the mining sector, and gold miners want to absorb this money."
This will help bridge the huge gap left by the 2018 cooperation between Barrick Gold and London-listed Randgold Resources in the London market. In recent years, the speed of listing of London mining companies has slowed down.
In second place is Canada’s Yamana Gold and Endeavor Mining’s TMX Group, which said that nearly half of the global listed mining companies are listed on the Toronto Stock Exchange and TSX Venture Exchange.
But since 2018, the number of mining IPOs and new share issuances in Toronto has declined, which shows that the Toronto market is losing some luster.
Yamana said in July that it had applied for a secondary listing on the London Stock Exchange (LSE) and said that LSE lacks large gold miners with an annual production of 1 million ounces or more.
Yamana Executive Chairman Peter Marrone said in an interview: "What investors are looking for and what we can provide can fit together."
Endeavor, which is listed in Toronto, said it will decide whether to conduct a secondary listing in London or New York before the end of the year after completing the acquisition of rival Semafo.
The company's chief executive officer Sébastiende Montessus said that the company's management is based in London, which makes it "our natural landing point."
A banker in Johannesburg stated that compared with Toronto or New York, London investors have a more risk appetite and are more satisfied with the complexity of African mining jurisdictions.