"New York cements its status as the global hub for gold equities"

" New York cements its status as the global hub for gold equities \r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\nThe momentum has been building for years, but this week made it official: the epicenter of the gold mining industry now lies firmly in New York.\r\n\r\nThe announcement that top-five producer AngloGold Ashanti Ltd. will move its primary listing to the New York Stock Exchange represents the severing of more than a century of ties with South Africa, three years after selling its last mine in the country. But it also points to a wider reality for the gold mining market: if you\u2019re looking to tap more investors and capital, there\u2019s only one place to be.\r\n\r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n \r\n\r\nNew York\u2019s status as a global hub for gold equities has expanded in recent years after a series of mega deals reshaped the industry, creating two North American behemoths that dominate the space \u2014 both of which trade in New York. The concentration of industry-specific exchange-traded funds have also added to the attraction.\r\n\r\n\u201cIt\u2019s where the largest pool of capital by far is,\u201d AngloGold Chief Executive Officer Alberto Calderon said in an interview Friday. \u201cIt\u2019s where the specialist investors who like gold are.\u201d\r\n\r\nFor years, New York vied with London as the world\u2019s premier gold-equity trading hub, while Toronto, Johannesburg and Sydney also put up a valiant fight. But the competition now seems all but over. (In AngloGold\u2019s case, London, which was long touted as a potential listing venue, must instead settle for being home to the miner\u2019s new headquarters.)\r\n\r\nThe importance of New York trading is already apparent for AngloGold. The company\u2019s secondary listing there already accounts for about two thirds of its trading volumes, providing a disproportionate amount of liquidity, given only about one third of shares are held by US investors.\r\n\r\nAngloGold\u2019s move comes as gold itself edges toward a record, driving investor interest. The metal has risen amid banking sector turmoil, strong central-bank buying and increasing bets the Fed will start cutting interest rates later this year.\r\n\r\nThe US is also home to the world\u2019s biggest gold mining ETFs, such as The VanEck Gold Miners ETF. As more investors pile into exchange-traded products as an easy exposure to the metal, a heavier weighting is a quick route to increase liquidity.\r\n <img class=\"wp-image-1117815\" src=\"https:\/\/www.mining.com\/wp-content\/uploads\/2023\/05\/Valuation-gap-1024x576.jpg\" sizes=\"(max-width: 1024px) 100vw, 1024px\" srcset=\"https:\/\/www.mining.com\/wp-content\/uploads\/2023\/05\/Valuation-gap-1024x576.jpg 1024w, https:\/\/www.mining.com\/wp-content\/uploads\/2023\/05\/Valuation-gap-300x169.jpg 300w, https:\/\/www.mining.com\/wp-content\/uploads\/2023\/05\/Valuation-gap-768x432.jpg 768w, https:\/\/www.mining.com\/wp-content\/uploads\/2023\/05\/Valuation-gap.jpg 1200w\" alt=\"\" width=\"1024\" height=\"576\" \/> \r\nFor a while, the London Stock Exchange \u2014 home to most of the world\u2019s biggest diversified miners \u2014 looked poised to hold its own. London-listed Randgold Resources became a poster child for the industry and its record as the FTSE 100\u2019s best-performing company drew others to list there in attempt to replicate the \u201cRandgold premium.\u201d\r\n\r\nBut London\u2019s revival fizzled out. The companies that tried to replicate Randgold struggled with operational setbacks, while Randgold itself was so successful that it completed a de facto reverse takeover of Barrick, with CEO Mark Bristow taking over the enlarged company.\r\n\r\nAt the time, Bristow was\u00a0 particularly pleased \u00a0that he secured the GOLD ticker for the company to trade on in New York, creating obvious brand appeal for bullion-hungry investors.\r\n\r\nToday, Barrick\u2019s volume in New York is roughly three times the number of shares changing hands in Toronto.\r\n\r\nIn 2019, US rival Newmont Corp. followed the Barrick-Randgold tie-up with its own transformational deal, buying Canada\u2019s Goldcorp. Newmont \u2014 now the world\u2019s biggest gold miner \u2014 appears about to get even bigger, as it pursues a $19.5 billion takeover of Newcrest Mining Ltd.\r\n\r\nThe series of mega deals, backed by US investors with a keen appetite for bullion and the companies that mine it, has left many of their one-time rivals looking increasingly irrelevant.\r\n\r\nNewmont \u2014 even before its planned purchase of Newcrest \u2014 is worth $36.5 billion and Barrick $33.7 billion. AngloGold is valued by its investors at just $10.7 billion.\r\n\r\nWhile much of the discrepancy is because the larger companies produce more gold at a lower cost, AngloGold also believes having more US shareholders will help close the valuation gap.\r\n\r\nCurrently, about 35% of AngloGold\u2019s investors are US based, a number it expects to rise over time.\r\n\r\n\u201cFor the relative size of our company, we are significantly underrepresented in that pool of capital,\u201d said Calderon.\r\n\r\n \r\n \r\n \r\n "

"New York cements its status as the global hub for gold equities"

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