Page 12 - pd248 April17 mag-web

NEWS

Australians pound the
pavement for UK capital

Risk adverse local in- Accessing capital and
vestors are pushing exposure to international

Australian companies institutional investors are

with international projects some of the other key

offshore to find funding. reasons why Australian

Grant Thornton Austral- companies would con-

ia corporate finance part- sider entering the AIM

ner Holly Stiles told Pay- market.

dirt that more Australian Meanwhile, the po-

companies with projects tential to attract higher

in Africa were looking to valuations is also a lure,

the AIM market to access with the average market

capital. cap of ASX companies

“Australian investors (excluding ASX200 vehi-

are still very risk adverse cles) at the end of 2016

and their preference is for being $18.5 million com-

local projects that they pared to that of an AIM

can understand,” Stiles company which was

said in light of releasing $133.9 million.

the AIM Market report last European and London investors are more receptive to backing Last year there were
month. projects in Africa than Australian investors 43 Australian companies
listed on AIM boasting a
“Through our JUMEX

survey, we have seen in the last couple “What Australian mining companies total market capitalisation of £1.5 billion

of years a shift from people looking off- are finding is that whilst perhaps they are with an average market cap of £35 mil-

shore for new projects to really refocus trying to be understood locally by inves- lion each.

on Australia again and that is really re- tors, their stories are being Aura Energy Ltd was

flecting investor interest. understood easier in Lon- one Australian company

“If there was a real trend a while ago to don.” to list on AIM in 2016 af-

look to Africa for more value out of pro- The AIM market of the ter raising £2.8 million.

jects, the companies that have still got London Stock Exchange is The company has ura-

those projects are finding they are less the most successful growth nium, gold and lithium

attractive to Australian investors now, market in the world and assets in Mauritania and

whereas in London there is a long history while investors in that part uranium in Sweden, yet

of investors investing in mining projects of the world may be more has received a mixed

in Africa. The same would apply more willing to invest in projects in response in the market,

broadly to Europe as well, so those in- Africa and Europe, Austral- reaching a high of 2.8p/

vestors are still there and interested. ian companies with assets share after opening at

in these jurisdictions will Holly Stiles 2.47p. On the ASX, Au-
still need to satisfy cer- ra’s shares have traded
Best performing Australian tain criteria.
between 0.02c and
companies on AIM
It was highlighted in Grant Thorn- 0.05c/share in the past 12 months.

Top 10 by market cap (£million) as at ton’s report that Australian compa- “We are seeing ASX companies go to
December 31, 2016 nies with strong management teams London and raise money from London in-
and good track records, good growth vestors, which they can do with their ASX

£372 SolGold plc (mining) prospects, a proven business mod- listing, but I think once they get to a point
£167 Mysale Group plc (consumer services) el with businesses ideally having and really need or want to refocus their
£138 Berkeley Energia plc (mining) reached profitability, an international investor/shareholder base, then those
flavour to the business, particularly companies can consider a dual listing in

£112 88 Energy Ltd (oil & gas) businesses that have strong growth London,” Stiles said.

£89 Base Resources Ltd (mining) opportunities in the UK and Europe, “Over time, domiciling in London is
£87 Mariana Resources (mining) would be attractive to AIM oriented also an option if they feel that is a more
£59 Coal of Africa (mining) investors. appropriate market for their investors go-
ing forward.”
Resources companies with ad-

£51 Wolf Minerals Ltd (mining) vanced assets are particulary attrac- – Mark Andrews
£51 Seeing Machines (technology) tive propositions for the AIM market
£49 European Metals Holdings Ltd (mining) and European investors, the report
also identified.

PAGE 12 APRIL 2017 AUSTRALIA’S PAYDIRT