Yamana Gold to list in London as it hails start of ‘long bull cycle’

Toronto-based miner seeks dual listing on main market in the midst of rising gold prices

Gold miner Yamana Gold is set to join the London Stock Exchange next Tuesday, giving investors a route to tap into strengthening gold and silver prices. 

The Toronto-based business is due to produce about 1m gold equivalent ounces in 2021 and 2022, from mines in areas such as Chile, Argentina, Canada and Brazil. 

It is valued at about 7bn CAD (£4bn) on the Toronto Stock Exchange, where its shares have risen 44.5pc to 7.4 CAD this year. It is also listed in New York.

Another Canadian company in the sector, Wheaton Precious Metals, the streaming business valued at £30bn CAD on the Toronto Stock Exchange, is also due to join the LSE before the end of the year. 

Both are keep to tap into London’s well-established base of mining investors, and those looking for safe havens and higher yields in gold and silver.

Gold prices have risen this year amid low interest rates and global volatility, climbing above $2,000 per ounce in August, while silver prices have also risen. 

Peter Marrone, founder and executive chairman, said: “I think we are at the front end of a long bull cycle with substantially higher metals prices, and that should position gold mining companies, particularly our company, very well.”

He added: “We are in an enviable position in that I think we can have our cake and eat it too: we are funded on all our obligations, including the growth of the company  - we see those as funded organically. And we are also in a position to return cash to shareholders and to increase that cash to shareholders.”

Yamana first paid dividends 13 years ago and has since shelled out more than $940m USD [£727m]. 

Gold miners have enjoyed a jump in valuations since the pandemic sent stock markets tumbling in February. 

Just last month, esteemed stock-picker Warren Buffett bought a 1.2pc share in Barrick Gold.

Daniel Racine, president and chief executive of Yamana, said the London listing would offer exposure to a “pure play senior gold produce with a high-quality asset portfolio in mining-friendly jurisdictions”.

Toronto-based Yamana is not seeking to raise additional capital as part of its joining the standard listing segment of the main market.