The past year has undoubtedly been challenging for companies in the lithium, rare earths and critical minerals sectors. Tight capital markets have also made it difficult for some ASX-listed entities to raise capital. On the flip side, depressed commodity prices can present potential buying opportunities for those looking to invest now and expand their presence in the sector while asset prices remain low. Boards of ASX-listed juniors must carefully consider how best to fund potential growth plans while conserving cash, and this usually involves deploying scrip as a form of consideration in M&A transactions. In this article, Andrew Ricciardi, Tom Barrett and Luke Paganin provide a brief list of key considerations to keep in mind when thinking about paying with scrip. Read more: https://lnkd.in/gx_2F8NQ #mergersacquisitions #funding #mining
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Canaccord Genuity (TSX:CF, LSE:CF)'s Junior Precious Metals Book sheds light on the dynamics of the #gold and #silver markets, with a focus on the strategies of 23 junior companies, like Nexus Minerals Ltd (ASX:NXM), and their strategic positioning in the sector. The report notes the significant rise in gold prices, reaching all-time highs across major currencies, with silver also showing promising gains. Despite this, gold equities have not fully capitalised on these high prices, prompting questions about when this trend might translate to junior and micro-cap companies. Exploration spending traditionally correlates with gold prices, which leads to major discoveries in times of an uptick. Recent years have seen a decoupling of exploration spend from the gold price due to increased mergers and acquisitions activity. More at #Proactive #ProactiveInvestors #ASX #NXM #Mining #PreciousMetals http://ow.ly/FTqg105rZ4e
Nexus Minerals gold potential profiled in Canaccord Genuity’s Junior Precious Metals Book
proactiveinvestors.com.au
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Do your investment performance a favor and listen
Are the markets broken? Why are junior mining companies still struggling for traction? Is there something wrong with the capital markets, or is this just a function of the cyclical nature of our business? "Antonio, you couldn't have asked me a better question", Jonathan Goodman of Dundee Corporation told me. "To me, that's our playground. A lot of these companies have broken valuations because it's a broken market", he added. Here are the 5 Key Takeaways from my conversation with him. 1. M&A in Gold and Copper Is Inevitable: As established producers face declining production profiles, mergers and acquisitions (M&A) are crucial to sustain growth. 2. Strategic Deals Are Driving Industry Transformation: Companies like G Mining and Reunion Gold exemplify successful M&A transactions, focusing on growth through quality assets. 3. Risks of Single-Asset Companies Are Increasing: One-mine companies remain highly vulnerable, with the need to diversify through acquisitions or partnerships more critical than ever. 4. Valuation Gaps Persist: Despite solid exploration results, junior miners frequently trade far below their net asset value (NAV), frustrating investors and companies alike. 5. Gold Stocks Lag Behind Gold Prices: While gold prices are on the rise, gold-producing stocks have failed to match this performance, indicating broader market sentiment issues. Watch the full conversation with Luc ten Have of GoldDiscovery here -> https://lnkd.in/eUtagAkm
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Are the markets broken? Why are junior mining companies still struggling for traction? Is there something wrong with the capital markets, or is this just a function of the cyclical nature of our business? "Antonio, you couldn't have asked me a better question", Jonathan Goodman of Dundee Corporation told me. "To me, that's our playground. A lot of these companies have broken valuations because it's a broken market", he added. Here are the 5 Key Takeaways from my conversation with him. 1. M&A in Gold and Copper Is Inevitable: As established producers face declining production profiles, mergers and acquisitions (M&A) are crucial to sustain growth. 2. Strategic Deals Are Driving Industry Transformation: Companies like G Mining and Reunion Gold exemplify successful M&A transactions, focusing on growth through quality assets. 3. Risks of Single-Asset Companies Are Increasing: One-mine companies remain highly vulnerable, with the need to diversify through acquisitions or partnerships more critical than ever. 4. Valuation Gaps Persist: Despite solid exploration results, junior miners frequently trade far below their net asset value (NAV), frustrating investors and companies alike. 5. Gold Stocks Lag Behind Gold Prices: While gold prices are on the rise, gold-producing stocks have failed to match this performance, indicating broader market sentiment issues. Watch the full conversation with Luc ten Have of GoldDiscovery here -> https://lnkd.in/eUtagAkm
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There is a lot to unpack in this seemingly straight forward headline. It seems no mining company is safe from shareholder activism, not even the huge ones. At the end of the day, it is one view that shareholder returns do matter. But Glencore has a long history of taking a position and sticking to it. At the heart of this protest are the coal assets that Glencore continues to hold. The Financial Times points out that Glencore has long insisted that publicly listed mining groups are better placed to responsibly run down coal mines as the world decarbonises, rather than selling them to privately held companies that escape scrutiny. If the coal is going to be extracted by someone, and used by someone, the theory goes that it makes sense to know how it is being done. This same balance of ideals is currently at the heart of the discussion about whether North American natural gas should be the transition fuel for the next few years. But let's drill down (mining pun intended) for a second on exactly what is being asked of Glencore. As of today, BHP, the largest market cap on the ASX is over AUD$210M, while Glencore's market cap is just under AUD$100M, so the ASX would be able to handle the liquidity. But changing a company's listing is a large undertaking and would require for starters: 1. shareholder approval, 2. costs of the new listing process and the delisting process, 3. changes to the continuous disclosure procedures of the company, and 4. changes to the accounting systems to meet different disclosure requirements. And of course you would incur the wrath of shareholders no longer able to readily trade on the ASX who were based in the UK.
Activist demands Glencore move its primary listing from London to Sydney
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We recently ran a popular webinar on "Global Finance in Mining: Today's Landscape and Tomorrow's Horizons," and the research and feedback were eye-opening. Sustainable investing has created unintended consequences, with brown sector companies facing heavy punishment through rising capital costs, leading to short-termism and limited impact. The mining industry, critical to society, is in danger of falling out of the modern finance landscape. However, the industry has already committed to responsible operations, net zero, and is now beginning to lead on nature positive commitments. Our research suggests that the mining industry is largely ineligible for mainstream investment due to the rise of sustainable investing, which is almost certainly a factor in the significant underperformance of gold stocks at a time of pronounced gold price strength. However, the vacuum created by this has forced governments to step in and inspire new funds, at least doubling the legacy pool of capital with more to come. This new pool of capital comes with the conditionality that it can only be accessed with a demonstration and commitment to sustainability. The most common question asked by the audience is how their company can get ahead of the curve, engage with their stakeholders, and differentiate themselves. #Sustainability #MiningIndustry #Investing #Capital #Finance #ResponsibleOperations #NetZero #NaturePositive #Stakeholders #Differentiation
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With gold prices hovering near record highs, we’ve identified three standout gold companies on the ASX: Resources + Energy Group (ASX:REZ), Navarre Minerals (ASX:NML) and Auric Mining Limited (ASX:AWJ). Despite being in production or holding highly mineralised gold assets, these gold companies remain significantly undervalued, presenting a compelling opportunity for investors. In a recent Stockhead article, Paul Hart, Executive Director at Canary Capital, explores why these gold stocks offer exceptional upside potential in today’s favourable macroeconomic environment for gold. Follow the link below to read the full article: https://lnkd.in/dsh3SJ8F #gold #asx #smallcap #undervalued
MoneyTalks: Canary Capital’s Paul Hart sees upside in these three gold plays - Stockhead
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Gowest Gold Set to Go Private Amid Strong Chinese Investor Presence Gowest Gold (TSXV: GWA) is about to go private after the Ontario Superior Court of Justice approved a plan for shareholders to buy the company’s remaining shares. CEO Dan Gagnon said in June the transaction will help investors who have been the company’s main source of capital to bear the continuing risks of exploration and financing. #mining #miningnews #gold
Gowest Gold preps to go private as Chinese investors hold almost half of shares - The Northern Miner
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St Barbara Limited. ASX. SBM ***Up 147.22% past year.*** Is an Australian-based, ASX listed company with gold mining operations in Canada and Papua New Guinea. At a Glance Shares Issued 818.3 M | Market Cap A$380.529 M Year High 0.50 | Year Low 0.1375 | Today 0.4450 Substantial Shareholders Baker Steel Capital Managers LLP - 9.2% Schroder Investment Management - 5.4% St Barbara Limited Barbara is forecast to grow earnings and revenue by 81.4% and 11.3% per annum respectively. EPS is expected to grow by 80.4% per annum. Return on equity is forecast to be 4.5% in 3 years. Source: https://lnkd.in/ge5fh7kj Corporate Presentation: https://lnkd.in/g-8G6gpj Key Management Contacts Andrew Strelein, Managing Director and CEO Sara Prendergast (CPA, GAICD, FAusIMM) CFO Andrew Taylor, Vice President, Atlantic Operations Craig Hudson, General Manager, Capital Projects Investor Relations David Cotterell General Manager Business Development & Investor Relations [email protected] T: +61 3 8660 1959 M: +61 447 644 648
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'Peter Grosskopf, the former CEO of Sprott who turned its investment banking unit into a separate company focused on junior mining stocks, says large institutional investors are handicapped by liquidity concerns. Juniors must be nimble in attracting capital from industry stalwarts through presentations and multi-media channels, Grosskopf says. “We’ve been talking about this coming M&A boom,” Grosskopf told Mining.com’s Frik Els. “My sense is that majors are doing more deals, not less.” (source northernminer.com) https://lnkd.in/eB4gRAAb #mining #juniors #financing #investment #disconnect #liquidity #commodities #evs #netzero #copper #gold #uranium
Video: Ex-Sprott CEO at SCP Resource Finance explains commodities vs stocks divergence - The Northern Miner
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Elliott Management is setting up a company to hunt for global mining assets in the range of at least $1bn, as it seeks to take advantage of the depressed valuation of groups operating in the sector, people familiar with the matter said.Elliott’s move comes at a time metal prices have pulled back because of macroeconomic weakness but are expected to rise rapidly on a surge in demand, particularly for electric vehicle batteries, renewable energy and power grids, as supply struggles to keep pace. However, valuations of mining companies have been hit by investor concerns over environmental, social and governance risks as well as geopolitical volatility and the boom-bust nature of commodity markets, which have led institutional shareholders to reduce their exposure to the sector. #energytransition #futureofenergy #copper #gold #discoveries Culpeo Minerals $CPO Tesoro Gold $TSO Max Tuesley Zeff Reeves Susan Kerr Linton Putland Paul Schmiede Lee Bowers Andrew Prior Rob Hallam
Elliott Management on the hunt for mining assets worth at least $1bn
ft.com
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Managing Director, Owner and Founder, NextLevelCorporate Advisory delivering unparalleled corporate development outcomes at the intersection of M&A, Financial Advisory and Business Strategy.
1moExcellent and timely refresher. Thank you. With higher rates for longer (here and in the U.S.) and a very strong USD challenging the affordability of commodities (almost all priced in USD) there are some challenges to fundraising in several sectors, meaning that companies need to be alive to smart corpdev solutions. Scrip based deals definately play a role.