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AFRICA DOWNUNDER PREVIEW

African dreams

restart on ASX

by Dominic Piper

he ASX will likely welcome two new African gold explorers with North American investors – perhaps still spooked by the
Tbefore the end of 2020, a further sign the Australian board is security incident at Semafo’s Bongou mine in Burkina Faso
the bourse of choice for juniors active on the continent. in November 2019 – preferring Tier 1 jurisdictions, including
After a drought of African-focused IPOs, Sarama Resources Inc Australia.
and Megado Gold Ltd both announced plans to list in Australia The shifting sentiment has led Sarama to finally make its move,
during September. with the TSX-listed explorer announcing in September that it
Australian gold equities have enjoyed a stellar four-year period would be pursuing a dual listing on the ASX before the end of
relative to North American peers but until this year, Australian 2020.
investor sentiment was skewed towards domestic stories. “The ASX understands the jurisdictions better than the
Attitudes have changed in 2020, however, with share prices on TSX, which is much more Americas focused,” Sarama chief
a sharp incline over the last six months. executive Andrew Dinning told GMJ. “Plus, there have been
Established producers Perseus Mining Ltd (up 114% since several ASX successes in West Africa in recent times with West
March 16) and Resolute Mining Ltd (up 67% in the same period) African Resources the standout. Their success is great for the
posted strong earnings for FY20 and newly minted miner West industry because it gives everyone confidence projects can be
African Resources Ltd (up 158%) has barely put a foot wrong in successfully built there.”
its development of the Sanbrado mine in Burkina Faso. Dinning sees the move to the ASX as a natural one for Sarama.
Another developer, Cardinal Resources Ltd, is at the centre of a The company has always been headquartered in Perth and the
bidding war between Shandong Gold and Nordgold Inc which entire board is now Perth-based.
has pushed its shares up 200% in the period. “It is almost like coming home after 20 years in overseas
Even African-focused explorers are enjoying market support markets, so it is all a logical progression,” he said.
after a period out of the limelight, with Predictive Discovery Ltd Adding weight to the argument is Perth’s reputation as the home
(up 1,150%), Oklo Resources Ltd (up 110%), Chesser Resources of African mining technical expertise
Ltd (up 316%), Mako Gold Ltd (up 312%) and Tietto Minerals Ltd “If you look at the recent record of mine builds in West Africa,
(up 300%) all performing strongly. they’ve all been on time and budget and they’ve all had lots of
In contrast, TSX-listed African juniors are yet to be caught up in elements coming out of Perth,” Dinning said. “If you want good
the early waves of optimism washing over the Canadian scene African skills, Perth is the place to go, whether that’s companies,

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