Newcrest starts trading in Canada

Shares in Newcrest Mining (TSX: NCM; ASX: NCM) were up almost 2% in pre-market trading in Canada, as the miner, Australia’s largest gold producer, began trading on the Toronto Stock Exchange (TSX).

The stock was up 1.8%, or 56¢, to $30.25, as gold prices regained part of the ground lost following a sharp pullback on Oct. 13, and managed to reclaim the key US$1900 per oz. mark.

Gold miners have benefited from rising bullion prices, which have climbed around 30% this year, as central banks have implemented stimulus measures in response to the coronavirus pandemic.

Newcrest said the Toronto listing is part of its strategy to pursue growth in the Americas. It follows the acquisition of a 70% interest last year in Imperial Metals‘ (TSX: III) Red Chris copper and gold mine in British Columbia.

In 2018, the company grabbed an equity interest in Vancouver-based Lundin Gold (TSX: LUG) to help it develop the Fruta del Norte gold project in Ecuador.

Newcrest CEO Sandeep Biswas believes the Toronto listing will improve the company’s 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 Australian Stock Exchange, and its secondary listing on the Papua New Guinea Exchange market, also trading under the symbol NCM.

As of Aug. 31, there were 1,129 mining companies listed on both the TSX and TSX Venture Exchange, with a combined market capitalization of $523 billion, including 95 international mining companies with a combined market capitalization of $105 billion.

Newcrest said earlier this month that it was proceeding 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 all-in sustaining costs (AISCs) by an estimated US$22 per ounce.

Newcrest’s board has also approved a front-end recovery project at the company’s Lihir mine in Papua New Guinea.

Both projects require a combined investment of US$236 million, and are expected to boost gold production and recoveries at the two mines.

— This article first appeared in MINING.com, part of Glacier Resource Innovation Group.