Reports that an activist hedge is trying to pressurise Rio Tinto (LON:RIO) Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) to dump its UK listing would be the icing on what has been a very tough year for the mining sector in London.
Finance at the small-cap end has dried up while the bigger players have been affected by China’s steady economic slowdown.
Whisper it, through all this there are pockets of growth within the London Stock Exchange’s mining ranks and not always where you would expect.
Mine developments are moving forward: Kodal, Atlantic Lithium (LON:ALLA) and Adriatic for three, while very quietly, the LSE’s gold sector has been enjoying a bit of a renaissance.
Perhaps that’s understandable given the price of gold hit an all-time high earlier in the year, but what is not so predictable is that most of its constituents are expanding - either organically or through acquisition,
True, the sector has not escaped the 2024 London exodus completely.
Egypt-focused Centamin (LON:CEY) was bought last month for US$2.5 billion and there has been consolidation and some collapses at the bottom end, but for most the tone is upbeat and the talk of expansion.
Endeavour Mining – market cap: £3.51 billion
FTSE 100 member Endeavour Mining PLC (LON:EDV) (LSE:EDV, TSX:EDV, OTCQX:EDVMF) is a good example.
By far, the largest pure gold miner still listed in London and a bellwether globally for Africa-based miners, it has recovered from the shock departure of its chief executive earlier in the year to open two new mines and confirm another for 2026.
Assafou in the Ivory Coast, the new development, is slated to become a 329,000 oz a year producer at sustaining costs of US$892 an ounce over the first ten years with a total estimated mine life of fifteen years.
That followed the first pour at Lafique, the miner’s fifth new commission in a decade, and expected to produce 90-110,00 oz of gold at all-in sustaining costs of $900-975/oz this year.
The Sabodala-Massawa BIOX project, meanwhile, was commissioned in April.
“Looking forward, we have visibility to organically grow the production profile to our 1.5 million ounce portfolio objective by the end of the decade, while maintaining best-in-class margins,” chief executive Ian Cockerill said in November.
Pan African Resources – market cap: £691 million
At the time of going to press meanwhile, South-Africa-based Pan African Resources PLC (AIM:PAF, OTCQX:PAFRY, JSE:PAN, OTCQX:PAFRF) had the distinction of being the best-performing stock on AIM in 2024, with its share price more than doubling.
With the gold price at a record high, you might say that’s how it should be, but deep underground mining is a difficult and unpredictable business.
As impressive, have been the expansion moves that have seen a new tailings plant open at the core site but intriguingly (and presumably using the knowledge gleaned from that development) it has now purchased a potentially sizeable tailing operation in the US.
Its aim is to triple production over the next five years to around 300,000 ounces, which using a UK football metaphor, would put the miner firmly at the top of the Championship.
Greatland Gold - market cap: £798 million
Aussie-based Greatland Gold PLC (LON:GGPL) (AIM:GGP, OTC:GRLGF) has also been on the acquisition trail but now with the full ownership of its Havieron discovery plus the nearby Telfer gold mine for US$425 million, it is aiming for the Premier if not Champions League of mining.
Execution is the critical thing for Greatland now. In the early stages, it wants 425,000 gold equivalent ounces a year out of Telfer before stepping up its development at Havieron and the exploration of its surrounding acreage in Paterson, West Australia.
Caledonia Mining – market cap: £149 million
Zimbabwe-based Caledonia Mining Corporation PLC (LON:CALq) (AIM:CMCL, NYSE-A:CMCL) has had a tricky operational year, but its latest update suggested things at the Blanket mine are back on track with production this year forecast to be between 74-78,000 oz.
That total could triple if the plan for the Bilboes project, also in Zimbabwe, comes to fruition.
A feasibility study is due in the first quarter of 2025 and with drilling ongoing at the huge and adjacent Motapa acreage it should provide a clear picture of the potential and path to development.
Thor Explorations – market cap: £104 million
Thor Explorations Ltd (LON:THX) (TSX-V:THX, AIM:THX, OTC:THXPF) will produce around 85,000oz of gold this year from its Segilola mine in Nigeria, but its exploration activity has been focused on assessing the potential to increase this through underground mining.
Exploration drilling is also ongoing at Douta, where a pre-feasibility study is due shortly.
Now virtually debt-free, the company indicated recently it is also looking at projects away from its West Africa core and in Southern and East Africa.
Ariana Resources - market cap: £35 million
Ariana Resources PLC (AIM:AAU), too, has a big project on the go, namely Dokwe in Zimbabwe.
Traditionally focused on Turkiye, Ariana acquired Dokwe through the reverse takeover of Aussie-listed Rockfire.
Dokwe has a 1.8 million resource currently and talks have already begun with its Turkiye partners over possibly them being part of the development plan.
An Aussie dual-listing is planned for later in 2025.
Anglo Asian - market cap: £120 million
Anglo Asian Mining PLC (AIM:AAZ, OTC:AGXKF) has recovered strongly from a tailings dam issue that forced it to halt production at its main mine at Gedabek in Azerbaijan for months.
Gedabek has re-opened again, while Anglo Asian has commissioned a new mine at Gilar and published a maiden resource for the Garadag copper deposit, also in Azerbaijan.
Latin groups - Fresnillo , Hochschild
Finally, there are the Latin American stalwarts: FTSE 100 member Fresnillo PLC (LSE:LON:FRES) (market cap £4.7billion), which though seen as a silver miner predominately produces 600,000 oz of gold a year and the smaller Hochschild.
Problems with labour costs, inflation and its operations have dented Fresnillo’s claims to be the proxy for gold and metal silver prices, but management is talking up its recent operational improvements.
Hochschild Mining (LON:HOCM) PLC (LSE:HOC, OTCQX:HCHDF) (market cap £1.1 billion) has seen its share price bounce strongly in the past few months after it reported its strongest quarter for almost five years.
Gold production this year is forecast at between 343,000-360,000oz.
Attractive bunch
Overall, it is a decent sub-group and you would hope the LSE could attract more listings based on how well this batch of miners is doing.
What the gold price does will be a major factor, but with the bugs predicting a rise to above US$3,000 again as the Trump administration gets going, that might not be a problem and there will be no excuse if companies do decide to go elsewhere