Wall Street Is Throwing Billions at Once-Shunned Gold Miners – by Yvonne Yue Li, Justina Vasquez and Aoyon Ashraf (Bloomberg News – July 21, 2020)

https://www.bnnbloomberg.ca/

(Bloomberg) — A year ago, you couldn’t get Wall Street to touch most gold miners’ stocks. Today, it’s throwing billions at the industry.

Precious-metals miners once seen as too leveraged and high-risk for the typical investor raised $2.4 billion in secondary equity offerings during the second quarter, data compiled by Bloomberg show. That’s the most since 2013 and seven times more than the funds they raised a year earlier.

With the Covid-19 crisis threatening economies worldwide and gold prices soaring on the heels of monetary and stimulus programs, precious-metals companies have become the darlings of the investment community.

The sector, which once largely drew the attention of specialist funds, is now attracting a broad base of investors.

“All of a sudden we’re seeing real interest from generalists,” said Bryan Slusarchuk, chief executive officer of Fosterville South Exploration Ltd., whose company plans to dig for gold in Australia.

For the rest of this article: https://www.bnnbloomberg.ca/wall-street-is-throwing-billions-at-once-shunned-gold-miners-1.1468213

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