MIIF-backed gold ETF worth over $60m to be listed on the GSE
The Minerals Income Investment Fund (MIIF), according to its CEO, Edward Koranteng, is currently developing a Physical Gold-Linked Exchange Traded Fund (MIIF Gold ETF) to be listed on the Ghana Stock Exchange (GSE) in September 2023.
Making the assertion during the MoU signing ceremony between the Fund and the Ghana Stock Exchange on Thursday, March 23, 2022, Koranteng averred the MIIF-backed Gold ETF will be structured with gold as the principal underlying asset, for which the security will track the price of gold.
According to him, the ETF will is expected to provide portfolios and Pension Funds with options away from government securities in view of the recent domestic debt restructuring programme undertaken by government.
“We hope to introduce the gold backed ETFs by September this year, we find the listing of a Ghanaian ETF by MIIF extremely exciting and definitely a game changer,” he remarked, adding that, the value of the MIIF Gold ETF will be bigger than the $60m market value of the ABSA-backed gold ETF currently listed on the Ghana Stock Exchange (GSE).
Global gold ETF assets under management (AUM) at the close of 2022, stood at $203bn.
The MIIF Gold ETF, Koranteng further noted, will be supported by sustainably mined gold from small scale mining firms under its Small Scale Mining Incubation Program. The small scale mining incubation program is a direct investment by MIIF into the small scale sector.
Small scale mining companies under the MIIF incubation program will be listed on the alternative exchange of the GSE in line with the plan to develop mining juniors and very good mid tier Ghanaian mining companies.
Two More Mining Companies to be listed in September
Aside the listing of the MIIF Gold ETF, two mining companies are also expected to be listed on the GSE in September this year, as MIIF, enabled by the MoU between itself and the GSE, continues to advocate for all mining companies in which it has equity investments, to list on the GSE.
According to Koranteng, one lithium mining company and a salt mining company are expected to be listed on the GSE.
Speaking during the MoU signing ceremony, MD of the GSE, Abena Amoah, remarked that the GSE and MIIF are establishing a practical framework to embed the minerals and mining asset class as a viable investment opportunity for retail and institutional investors in Ghana, and the African Sub-region.
“We aim to see businesses operating in the mining sector raise capital on any of the GSE’s three markets: the Main Market for Equities; the Alternative or Growth Market for SMEs and junior firms; and the Ghana Fixed Income Market for long or short-term corporate debt securities,” she posited.
“This collaboration is an important milestone for both organizations as we seek to increase the listing of mining companies on our markets; support the growth of the Ghanaian economy, and create wealth for our citizens,” she added.
The MIIF is a sovereign minerals fund mandated by the Minerals Income Investment Fund Act 2018, (Act 978) as amended, to maximise the value of dividend and royalties income accruing to the Republic of Ghana in a beneficial, accountable and sustainable manner and to monetize Ghana’s mineral wealth in a manner which would bring long term value to Ghana and develop and implement measures to reduce the budgetary exposure of Ghana to minerals income fluctuations.
