GOLD and silver mining companies secured over $6.2bn through share sales last year, marking the highest capital-raising volume in at least 12 years for US and Canadian-listed miners, according to Bloomberg News.
Small and mid-sized precious metals producers dominated the activity, capitalising on rallying commodity prices, said the newswire.
Hemlo Mining Corporation, a TSX Venture Exchange-listed company valued at C$1.5bn, completed the sector’s largest transaction, raising $489.7m in September, said Bloomberg. Perpetua Resources Corp followed with a $374m offering, whilst Novagold Resources raised $206m, it said.
“These companies raise money not when they want to but when they can,” said Brian Madden, chief investment officer at First Avenue Investment Counsel. Many miners possessed development projects but required clearer commodity price momentum before proceeding, he noted.
Senior producers including Newmont, Barrick and Agnico Eagle remained sidelined despite record share valuations, instead deploying robust cash flows from elevated metal prices towards share buybacks rather than equity issuance.
Analysts view this dynamic positively, with smaller firms accessing capital whilst larger companies demonstrate financial discipline rather than pursuing aggressive acquisitions or risky growth projects in unstable jurisdictions, said Bloomberg News.
“They’re being very responsible at this point,” said Brooke Thackray, analyst with Global X Investments Canada.
Most transactions were oversubscribed, attributed to strong investor appetite for precious metals exposure and compelling use-of-proceeds cases. Companies offered shares at discounts exceeding 3.5%.
Daniel Nowlan, managing director at National Bank Capital Markets, expects the robust fundraising pace to persist through early 2026.