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CoVeR

“ They are worth about $US204

billion, making the LSE the
second largest African exchange in
the world, and when you are meeting
with investors you hopefully don’t
Charlie Walker
have to convince them about Africa.

“There is going to be a lot more business the US, Twigger said. latory barrier. If you look at the investors
being done in the streaming space because “For instance, a security transfer agent that can invest in those [digital] platforms it
they are used to competing with equity but we have engaged with has 65,000 com- is still dwarfed by the public equity markets
there is no equity, so there is a reasonable panies behind them and they have set up at the moment. But, it is something that we
business case for it,” PCF Capital Group an alternative trading system which covers keep a pretty close eye on. Blockchain is
managing director Liam Twigger said. eight jurisdictions. They have a number of something that we have got investments in
“The equity performance has been so major growth dealers getting onto the net- the space, but time will tell as we work out
extremely poor so the streamers are com- work. These are popping up everywhere what the use is,” Walker said.
ing in, picking the more advanced projects and there are eight alternative trading sys-
at a very low equity value and they are tems trying to take down the NASDAQ,” – Mark Andrews
punting themselves up the capital curve. Twigger said.
Instead of being the shareholder who is the “I think a lot of the retail investors are go-
last one that gets paid, they are working in ing to end up on the systems, which you
at the top.” can only access via a global dealer. It costs
In the absence of brokering a deal with a nothing to trade a share and I think there There is going
big brother or courting a high net worth in- is a moment coming for the ASX, TSX and “ to be a lot more
dividual with skin in the game, Twigger said the other exchanges. Not all of them will get
juniors were in a tough spot and warned up, but if you look at what they are doing business being done
that the advent of digital securities – ETFs and some of the animosity and angst with
and the like – would continue to decimate compliance on the exchanges there seems in the streaming space
active fund managers across all sectors. to be a real push and they may operate an because they are used
Twigger said that there were trillions of alternative cheque book to being on a pub-
dollars piling into passive index-tracking lic market, not a private market; it is fasci- to competing with
ETFs and alternative trading systems, nating.” equity but there is no
which were disrupting capital flow into tradi- The impact of digital securities platforms
tional exchanges highlighted by the fact that are being monitored closely by the LSE, equity, so there is a
there is half the number of companies listed where the amount of money raised in the reasonable business
on the NYSE than a decade ago. first half of the year was up 35% but the
Last year was the first time ever that more number of deals down 35%. case for it.
money was raised privately than publicly in “The challenge you still have is the regu-

A p
A panel of experts on mine finance told anel of experts on mine finance told
delegates at Africa Down Under that elegates at Africa Down Under that
d
t the time is ripe for companies with the he time is ripe for companies with the
ca
capacity to swoop on undervalued juniors pacity to swoop on undervalued juniors

Page 24 OCTOBeR 2019 aUSTRaLIa’S PaYDIRT