Shares in Newcrest Mining (ASX, TSX, PNGX: NCM) were up almost 2% in pre-market trading in Canada on Wednesday as the miner, Australia’s largest gold producer, headed to its second day at the Toronto Stock Exchange.
The stock was up 1.8%, or 56 Canadian cents, to C$30.25, as gold prices regain part of the ground lost following Tuesday’s sharp pullback and reclaim the key $1,900 an ounce mark.
Gold miners have benefited from rising bullion prices, which have jumped around 30% this year as central banks dial up stimulus measures in response to the coronavirus pandemic.
The listing is part of Newcrest’s strategy to pursue growth in the Americas
Newcrest said the listing is part of its strategy to pursue growth in the Americas. It follows the acquisition of a 70% interest last year in the Red Chris copper and gold mine in British Columbia.
In 2018, the company had grabbed an equity interest in Vancouver-based Lundin Gold (TSX: LUG) to help it develop the Fruta del Norte gold project in Ecuador.
Newcrest chief executive Sandeep Biswas believes the Toronto listing will improve its global visibility.
“We have observed an increase in interest from North American investors in the gold sector over the last six months,” Biswas said in a statement. “When combined with our large existing North American shareholder base it makes sense for Newcrest stock to be able to be traded in this time-zone.”
The company will retain its primary listing on the ASX, and its secondary listing on the Papua New Guinea Exchange market, also trading under the symbol NCM.
As of August 31, 2020, there were 1,129 mining companies listed on both the TSX and TSX Venture Exchange, with a combined market capitalization of C$523 billion, including 95 international mining companies with a combined market capitalization of C$105 billion.
Newcrest said earlier this month that it was going ahead with a second-stage expansion of its flagship Cadia gold mine, located in New South Wales, Australia.
The project, it said, would likely increase plant capacity to 35 million tonnes per annum (mtpa) from 33 mtpa and reduce the all in sustaining costs (AISC) by an estimated $22 per ounce.
Newcrest’s board has also approved a front-end recovery project at the company’s Lihir mine, in Papua New Guinea.
The projects require a combined investment of $236 million and are expected to boost gold production and recoveries at the two mines.
