Brexit – The Golden Lining?

However, for one particular sector the aftermath of the Brexit vote has already brought some good news. Since the vote on 23 June, the price of gold has increased nearly 8% to $1,365 (as at 8 July), a two year high. This increase, and gold’s attraction as a safe haven in times of uncertainty, is good news for gold producers, and should only increase investors’ appetite for the metal and its miners.

This should continue a recent trend that has seen successful equity fundraisings and debt financings for AIM-listed gold producers like Memery Crystal client Shanta Gold ($10.5m equity and $40m debt), Hummingbird Resources (£49.5m equity) and Pan African Resources (£15.9m equity).

We have also seen increased interest in the private funding of gold development projects, with a number of our mining private equity clients currently reviewing opportunities, particularly in West Africa.

Our mining finance and equity capital markets teams are always interested in seeing new projects that require funding, whether equity or debt and whether privately or in conjunction with a listing on the Main Market or AIM. We also have a number of mining private equity clients who are interested in looking at gold projects at various stages of development.

Michael Dawes
Nick Davis