Majors Breathe Life Into Junior Financing in September
ADVERTISEMENT
The Assay - Mining investment news, insights and company profiles
Mining investment news, insights and company profiles
No Result
View All Result
Subscribe
  • Home
  • News
    • All News
    • Gold
    • Silver
    • Copper
    • Nickel
    • Lithium
    • Precious Metals
    • Base Metals
    • Battery Metals
    • Exploration
    • Development
    • Production
  • Articles
  • Assay Insights
  • Videos
    • CEO Interviews
    • Investor Panels & Presentations
  • Company Profiles
  • Magazine
  • Newsletter
  • 121 Mining Investment
  • About
    • About Us
    • Our Team
    • Contact Us
    • Partners
The Assay - Mining investment news, insights and company profiles
  • Home
  • News
    • All News
    • Gold
    • Silver
    • Copper
    • Nickel
    • Lithium
    • Precious Metals
    • Base Metals
    • Battery Metals
    • Exploration
    • Development
    • Production
  • Articles
  • Assay Insights
  • Videos
    • CEO Interviews
    • Investor Panels & Presentations
  • Company Profiles
  • Magazine
  • Newsletter
  • 121 Mining Investment
  • About
    • About Us
    • Our Team
    • Contact Us
    • Partners
No Result
View All Result
Subscribe
The Assay - Mining investment news, insights and company profiles
No Result
View All Result
Home Articles

Majors Breathe Life Into Junior Financing in September

By Christopher Galbraith, S&P GLobal

byThe Assay
5 years ago
Reading Time: 4 mins read
Majors Breathe Life Into Junior Financing in September

The US$1.26 billion raised by junior and intermediate companies in September was the second consecutive monthly increase and the largest in four months. It was the second-highest amount raised in 2018 to date, after US$1.38 billion in May, and the fifth month in the past year that companies succeeded in raising over US$1 billion.

Majors Breathe Life Into Junior Financing in September

The number of financings completed monthly fell from a 2018 high to date of 195 in June to 143 in August. In September, the number of completions bumped up to 148, an increase of five — four for specialty commodities and one for gold. However, the total amount raised nearly tripled over August’s US$462 million. This reinforces our position that investment in exploration, and more specifically the juniors, is returning, but it is doing so with greater investment in fewer companies.

Majors Breathe Life Into Junior Financing in September

 

Financings data is available in the accompanying Excel spreadsheet. It is accompanied by another article in the monthly Industry Monitor series: Drill Results.

Financings for gold exploration and development reached a six-month high of US$312 million. TSX/TVX-listed companies and one Hong Kong-listed company split most of the total, accounting for 44% and 45% respectively, while ASX-listed companies accounted for only 10%. September’s US$33 million raised for gold projects represented a 13- month low for ASX-listed companies.

Majors Breathe Life Into Junior Financing in September

 

Hong Kong-listed Munsun Capital Group Ltd. completed the largest gold financing, raising HK$1.1 billion to repay debt and maintain cash flow for its corporate operations as well as its mines in China. Canada’s Osisko Mining Inc. raised the second-largest amount for gold in a series of offerings that began in August and closed Sept. 18 and 19, raising an aggregate C$119 million and including investments from Kirkland Lake Gold Ltd. and Osisko Gold Royalties Ltd. Osisko Mining is using the funds to continue advancing exploration and studies at Windfall Lake in Quebec.

Majors Breathe Life Into Junior Financing in September

Base/other metals financings accounted for the lion’s share of all funding raised in September. The US$792 million total was more than triple the amount raised in August and also represented a six-year high. September saw 56 base/other metals raisings, the same number as in August, with one large financing representing 78% of the total. Most of the base metals funding raised in the past two months has been for copper projects.

Majors Breathe Life Into Junior Financing in September

Canada’s Ivanhoe Mines Ltd. completed two offerings in September, garnering investment from two Chinese companies. CITIC Metal Co. Ltd. took up a 19.5% interest in Ivanhoe with a C$723.5 million investment through the issuance of 196.6 million shares, giving CITIC a larger position than Ivanhoe’s co-chairman, Robert Friedland (17%). Ivanhoe’s other large Chinese investor, Zijin Mining Group Co. Ltd., exercised its anti-dilution rights with Ivanhoe and invested another C$78 million to maintain its 9.7% stake. More recently, on October 1 Ivanhoe announced a new copper discovery, named Makoko, at its Western Foreland project in Democratic Republic of Congo, located west of and exhibiting similar traits as Kamoa-Kakula.

 

Australia’s Poseidon Nickel Ltd. completed the second-largest financing, in two offerings totaling A$69 million. The struggling Australian nickel producer is attempting to restart operations at its Silver Swan underground and Black Swan open pit mines in Western Australia, which have been on care and maintenance since 2009. Poseidon plans to use cash flow generated by the operations to restart operations at its Lake Johnston and Windarra projects — the former having been on care and maintenance since 2013. The nickel-focused company also gained a strategic investor in the offering, garnering the support of Fortescue Metals Group Ltd. chairman Andrew Forrest, who took up an 18% stake in the company through his investment vehicle Squadron Resources Pty Ltd.

Majors Breathe Life Into Junior Financing in September

Financings for specialty commodities usually comprise less than 25% of funds raised by junior and intermediate companies. However, a fast-developing tech sector has increased the demand for lithium, graphite and rare earth elements, among other special-use commodities. Consequently, financing levels for specialty commodities has steadily risen over the past year, accounting for an increasing share of the monthly total amount raised.

 

The trend was interrupted in July, followed by specialty commodity funding hitting an all-time low of US$30 million in August and comprising only 7% of the total raised. However, funding increased more than fivefold in September, to a three-month high of US$155.6 million, with the share of total funding rising to 12%. There were 31 specialty commodities financings — ahead of August’s 27 but nevertheless still at a historically low level.

Majors Breathe Life Into Junior Financing in September

The largest financing for specialty commodities was completed by Syrah Resources Ltd., which raised A$94 million to fund ramp-up at its Balama graphite mine in Mozambique and finance evaluation of a contained vanadium resource. Balama has been operating with negative cash flow since operations started in December; however, Syrah expects the mine to be cash-positive by year-end.

 

U.S.-focused uranium producer Uranium Energy Corp. had the second-largest specialty commodity financing, raising US$20 million. With its Palangana mine in Texas on limited production, Uranium Energy has not generated revenue from its operations since 2015. It aims to use the proceeds for exploration and development at its portfolio of exploration projects across western U.S. states, Saskatchewan in Canada, and Paraguay.

Majors Breathe Life Into Junior Financing in September

TweetShareSend
Previous Post

Q&A with Chris Gan

Next Post

Independent Investment Research: Sheffield Resources Limited (ASX:SFX)

Related Posts

DLP Resources Intersects 693.4m Interval of 0.64% CuEq in Southern Peru
News

DLP Resources Intersects 693.4m Interval of 0.64% CuEq in Southern Peru

byColin Sandell-Hay, Contributor - The Assay
3 June, 2023
Mantaro Completes Drill Pad Construction at Santas Gloria Ahead of 2500m Drill Programme
News

Mantaro Completes Drill Pad Construction at Santas Gloria Ahead of 2500m Drill Programme

byColin Sandell-Hay, Contributor - The Assay
3 June, 2023
Filo Mining Increases Private Placement to C$130 Million
News

Filo Mining Increases Private Placement to C$130 Million

byColin Sandell-Hay, Contributor - The Assay
3 June, 2023
American Rare Earths Halleck Creek Tests Pave Way Towards Commercial Success
News

American Rare Earths Halleck Creek Tests Pave Way Towards Commercial Success

byColin Sandell-Hay, Contributor - The Assay
2 June, 2023
Ragusa Unveails Robust Burracoppin REE MRE of 96Mt
News

Ragusa Unveils Robust Burracoppin REE MRE of 96Mt

byColin Sandell-Hay, Contributor - The Assay
2 June, 2023
Matsa Confirms Large Gold System at Fortitude North
News

Matsa Confirms Large Gold System at Fortitude North

byColin Sandell-Hay, Contributor - The Assay
2 June, 2023
Next Post
Independent Investment Research: Sheffield Resources Limited (ASX:SFX)

Independent Investment Research: Sheffield Resources Limited (ASX:SFX)

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular Articles

  • Mixed Forecasts for 2023 Copper Price Levels

    Mixed Forecasts for 2023 Copper Price Levels

    0 shares
    Share 0 Tweet 0
  • The Assay Guide to Palladium vs Platinum

    0 shares
    Share 0 Tweet 0
  • The Assay’s Guide to Manganese Mining and Production

    0 shares
    Share 0 Tweet 0
  • Chinese EVs Storm the European Market

    0 shares
    Share 0 Tweet 0
  • Zinc Mining & Market Outlook 2022-2025

    0 shares
    Share 0 Tweet 0
  • Home
  • News
  • Articles
  • Investor Discussions
  • CEO Interviews
  • Company Profiles
  • Newsletter
  • Magazine
  • About Us
  • Our Team
  • Contact Us
Hyve logo

Please note: This Web site and The Assay magazine and the information and materials on this Web site and in The Assay magazine are not, and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, any regulated products, securities or investments. This Web site and The Assay Magazine do not, and should not be construed as acting to, sponsor, advocate, endorse or promote any regulated products, securities or investments. This Web site and The Assay magazine and the information and materials on this Web site and in The Assay magazine do not, and shall not be construed as, making any recommendation or providing any investment or other advice with respect to the purchase, sale or other disposition of any regulated products, securities or investments, including, without limitation, any advice to the effect that any mining or metals related transaction is appropriate or suitable for any investment objective or financial situation of a prospective investor. A decision to invest in any regulated products, securities or investments should not be made in reliance on any of the information or materials on this Web site or in The Assay magazine. Before making any investment decision, prospective investors should seek advice from appropriately qualified and licensed financial, legal, tax and accounting advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.

Privacy Policy
Cookies
Hong Kong Residents Privacy Statement

© 2023 The Assay

No Result
View All Result
  • Home
  • News
    • All News
    • Gold
    • Silver
    • Copper
    • Nickel
    • Lithium
    • Precious Metals
    • Base Metals
    • Battery Metals
    • Exploration
    • Development
    • Production
  • Articles
  • Assay Insights
  • Videos
    • CEO Interviews
    • Investor Panels & Presentations
  • Company Profiles
  • Magazine
  • Newsletter
  • 121 Mining Investment
  • About
    • About Us
    • Our Team
    • Contact Us
    • Partners

Please note: This Web site and The Assay magazine and the information and materials on this Web site and in The Assay magazine are not, and should not be construed as, an offer to buy or sell, or as a solicitation of an offer to buy or sell, any regulated products, securities or investments. This Web site and The Assay Magazine do not, and should not be construed as acting to, sponsor, advocate, endorse or promote any regulated products, securities or investments. This Web site and The Assay magazine and the information and materials on this Web site and in The Assay magazine do not, and shall not be construed as, making any recommendation or providing any investment or other advice with respect to the purchase, sale or other disposition of any regulated products, securities or investments, including, without limitation, any advice to the effect that any mining or metals related transaction is appropriate or suitable for any investment objective or financial situation of a prospective investor. A decision to invest in any regulated products, securities or investments should not be made in reliance on any of the information or materials on this Web site or in The Assay magazine. Before making any investment decision, prospective investors should seek advice from appropriately qualified and licensed financial, legal, tax and accounting advisers, take into account their individual financial needs and circumstances and carefully consider the risks associated with such investment decision.

Privacy Policy
Cookies
Hong Kong Residents Privacy Statement

© 2023 The Assay