Market Nuggets
Junior and intermediate mining companies raise the most in more than six years in August: BMO Capital Markets
(Kitco News) A total of $1.48 billion was raised by junior and intermediate mining companies in August, which marks the highest level since March 2014, writes BMO Capital Markets citing S&P Global. The precious metals sector led the mining pack. “According to S&P Global, 310 financings, 175 of which by gold miners ($659mn), were completed in August. Year-to-date, $3.56bn has so far been raised for gold projects, up 30% y/y YTD and the highest total for January through August since records began (in 2014). On a m/m basis, however, gold financings dropped 11% in August, while silver projects saw 9% m/m growth,” notes BMO Capital Markets commodities analyst Colin Hamilton. Positive sentiment is clearly returning to the mining sector, adds Hamilton. “Increasing financings, while not immediately meaningful to supply/demand balances, are reflective of positive sentiment returning to the mining industry on the back of better prices and an improving outlook, typically signalling a key inflection point in the broader commodity super-cycle.”
