RE:fyi 2020-08-19 08:52 ET - In the News
Also In the News (C-AEX) AEX Gold Inc
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. Nearly half of global public mining companies are listed on the Toronto Stock Exchange and TSX Venture Exchange, but the number of mining initial public offerings and new issues in Toronto has fallen since 2018, indicating the market is losing some lustre. London investors have more risk appetite and are more comfortable with the complexities of African mining jurisdictions than in Toronto or New York, a Johannesburg-based banker told Reuters. Greenland-focused AEX Gold listed on AIM, the LSE's small company submarket, on July 31. A listing in New York or London opens the door for miners' shares to be included in many more exchange-traded funds (ETFs)