The Minerals Income Investment Fund (MIIF) has been named the Best Financial Institution in Mining in Ghana by the French-based business publication, Forbes Monaco. The award is given to financial institutions that specifically concentrate on providing financial platforms and funding solutions to the mining sector.
Forbes took cognisance of MIIF’s strategic acquisition of over fourteen million shares and circa 4.65% stake in Asante Gold Corporation, a Canadian and Frankfurt listed gold producing company which operates in Ghana. The acquisition, which together with government’s carried interest and existing Ghanaian shareholders, would increase Ghanaian shareholding to more than 25%, is a first for Ghana in a multi-listed international gold mining company. Asante is currently in negotiation with Kinross Chirano to acquire 90% of the Chirano Mine in Ghana, which would further increase Ghanaian stake.
Forbes Monaco, the Monaco edition of the 93-year-old prestigious Forbes Magazine and Aurum Monaco, a gold refinery based in the Principality of Monaco, both highlighted MIIF’s proposed US$500million Small-Scale Incubation Programme as transformational for Ghana’s gold mining sector. The CEO of MIIF, Mr. Edward Nana Yaw Koranteng, said: “The proposed programme, which would inject over US$400million into the small-scale mining sector over a period of ten years, is in line with actualising President Nana Akufo Addo’s vision of formalising the small-scale mining sector, encourage environmentally sustainable mining and create Ghanaian gold mining champions”.
Mr. Koranteng told the Business & Financial Times that: “This award only spurs us forward. We are determined to build Africa’s biggest Minerals Fund with US$500million Assets Under Management (AUM) by 2025 and US$1billion by 2027. We have an exciting pipeline of projects, and a plan to realise our mission of investing for Ghana’s future”.
According to Mr. Koranteng, MIIF’s US$20million investment in Asante Gold, operators of the Bibiani Mensin Gold mine would certainly see an upshoot following the pouring of first gold in the third quarter of this year. He said MIIF, as at 18th April, had made circa US$5.7million for Ghana within the 2 months of investing in the asset.
Listing of Agyapa Royalties
Mr. Koranteng intimated that these early successes of MIIF, and the possibilities that MIIF present to the gold mining sector finds more possibilities in its subsidiary Agyapa Gold Royalties. Agyapa is a gold royalties company owned 100% by the Minerals Income Investment Fund. “Our intention is to list up to 49% of Agyapa on the London Stock Exchange and the Ghana Stock Exchange. We envisage raising between US$450million to US$700million from the IPO which proceeds; and it shall be directed at investing in infrastructure and other social amenities particularly in the mining communities”. The CEO indicated that: “Agyapa, by being incorporated in the UK and listed on the London Stock Exchange, provides the opportunity to leverage on its balance sheet to raise cheaper funding, and with less obstacles to further invest in other royalties companies and leading gold mining companies across the globe. This is an opportunity for Ghana to take the lead and the world is watching”.
Mr. Koranteng further elaborated: “I am confident that in view of current geopolitics, current global economic recessionary trends and demand for gold and equities of gold royalty companies, Agyapa’s market value upon listing would surely shoot up”. He added that, by listing on the London Stock Exchange, “We will achieve the highest levels of transparency and controls required for any listing in the world”. “The listing on the Ghana Stock Exchange, will give a greater number of Ghanaians the chance to participate in the ownership of our own mineral wealth. Whatever revenues realised from the listing of Agyapa comes directly to the Mineral Income Investment Fund. We are ready to engage on how we move Agyapa forward with all the relevant stakeholders”, Mr. Koranteng concluded.
Although the MIIF CEO did not give a definite timeline, it appears the intention to list Agyapa on the London Stock Exchange is toward the 4th quarter of 2022. With gold prices trending upward and the volatility being experienced by capital markets, gold seems a sure bet. The B& FT tracker sees gold prices being on a steady climb till about 2025.
About the Minerals Income Investment Fund (MIIF)
MIIF is a sovereign minerals fund mandated by the Minerals Income Investment Fund Act 2018, (Act 978) as amended, to maximise the value of dividend and royalties income accruing to the Republic of Ghana in a beneficial, accountable and sustainable manner, and to monetise Ghana’s mineral wealth in a manner which would bring long-term value to Ghana.
MIIF also has 100% ownership of Agyapa Royalties Company, the only state-owned gold royalties company in Africa. MIIF intends to list Agyapa on the London Stock Exchange and the Ghana Stock Exchange as planned later in 2022.