CAPITAL MARKETS

Mining financings at 11-year high in March quarter

RISING commodity prices saw companies in the mining and metals sectors raise a total of US$6.61 billion in the March quarter – a fivefold jump year-on-year and the highest three-month figure seen since 2011, according to data from S&P Global Market Intelligence.

Tom Hoskyns
Mining financings at 11-year high in March quarter

Investors homed in on base metals, which accounted for 40% of the figure, while gold financing also hit a nine-year high in the quarter of $1.68 billion.

However, while appetite for industrial metals remained strong throughout the quarter, gold financings slid fractionally in the month of March to $682 million.

Of the March quarter total, $1.86 billion was committed towards copper, up 54% year-on-year, while a further $2.25 billion was raised for so-called ‘specialty' commodities, of which just over half went towards lithium.

The strong showing by copper and battery metals comes as little surprise given the level of hype surrounding the sectors of late, with investors keen to gain to materials seen as integral to the post-COVID green recovery.

In terms of the regional split by exchange, the TSX/TSXV and ASX still account for more than three-quarters of the year-to-date total, with $3.24 billion raised in Toronto and $1.34 billion in Sydney.

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