Gold firms could increase valuation via a relisting

ALMOST 30 London gold companies could significantly enhance their stock market valuation if they were to migrate to a different exchange or consider dual listing, Edison Investment Research analyst Charlie Gibson has suggested.

Gibson said variations in the categorisation of gold resources in different countries – which change according to the reliability of estimated deposits – can have marked consequences for a company’s rating.

Australia is particularly attractive to investors since it ascribes the highest value to so-called “inferred resources” and measured ounces, therefore offering a significant uplift in a company’s value upon listing in the country.

Gibson added that the average gold ounce is actually worth $159 (£99.64) per ounce when taking into account the differences in valuation, rather than its historic benchmark worth of $35 per ounce.
This is despite the average cost of discovering gold falling to just under $9 per ounce.