The West African mining industry has seen significant fundraising activity since October last year, driven by higher metal prices and the need to meet a growing global demand for metals needed for electric vehicles and renewable energy.
For Capital (LON: CAPD), a mining service provider that has spent the last two years expanding into West Africa, lack of exploration spend, flat drilling activity and record levels of financing have created a prime scenario for companies to expand in the area.
The world’s second biggest gold-producing market zone, after China, is attracting a growing number of players, such as Barrick, IAMGOLD and Endeavour Mining, which recently acquired Teranga Gold.
Capital believes activity in the region is just taking off, as companies look to replace mine production and discover new sources of key metals amid talks of a new a commodity supercycle.
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