June 07, 2016
Partners Mike Amm and Mike Pickersgill are quoted in a Globe and Mail article detailing the recent upswing in capital market financings in the mining sector. Their comments reference insights from their article, "'Gold Shoots' at Last for Mining Sector Financing," featured in Torys' Capital Markets Mid-Year Report.
In the Globe article, streaming companies—companies that purchase future streams of precious metal production—are highlighted by Mike Amm as businesses that have raised significant capital in 2016, largely benefitting from today's low commodity prices. Below is an excerpt of the article.
"This is the streamers' heyday," Mr. Amm said. "When you've got low commodity prices, when you've got other forms of financing drying up for miners … streamers have great opportunities."
Mike Pickersgill cites the progress of gold companies in lowering their "all-in" costs as contributing to more sustainable access to capital market financing.
As a result, "there is a slow opening up of capital markets to mining as we see commodity prices continue to stabilize and consolidate," Mr. Pickersgill said.
To read the full article (subscribers only), click here.
To read Capital Markets Mid-Year Report 2016, click here.