Nick Candy-backed mining firm Metals Exploration climbs over 160% on the stock market after relisting
- Metals Exploration owns the Runruno Gold Project in Nueva Viscaya, Philippines
- The price of gold has soared this year because of the coronavirus pandemic
Shares in mineral resources firm Metals Exploration shot up today following its relisting on the AIM exchange.
They rose 168.8 per cent by the mid-afternoon on its first day back on the London Stock Exchange in seven months after negotiations over its debt obligations were settled.
The company, which owns the Runruno Gold Project in the Philippines and has property tycoon Nick Candy as its largest shareholder, hopes the new debt terms will secure its long-term viability.
Property tycoon Nick Candy is the largest shareholder in London-listed Minerals Exploration
It also believes the rising price of gold as a result of the coronavirus could create significant equity for the business.
A spokesperson for Mr Candy said the restructuring had ‘created stability’ for Metals Exploration in a way that gives it ‘flexibility and significantly reducing the possibility of a default.’
They added: ‘Gold is widely perceived as recession-proof which can be evidenced in the current record pricing…which coupled with the global pandemic and the upcoming US election, makes gold one of the desired assets in times of economic uncertainty.’
The element’s value has risen by a quarter in the last year, and the Runruno site can produce over 65,000 tonnes of gold per year, giving the firm great potential to financially benefit.
The business has struggled with its finances in recent years though as the Filipino government under Rodrigo Duterte has cracked down on mining in the country to help rehabilitate the environment.
He appointed Gina Lopez as his environment secretary, and prior to her death in 2019, she ordered the closure of 23 mines and the cancellation of 75 mining contracts that she claimed threatened watersheds.
Candy’s brother Christian bought a large stake in the London-listed miner in 2010 as the pair sought to diversify their business away from luxury property.
The pair helped design One Hyde Park, a modernist residential and retail development in Knightsbridge where flats can sell for tens of millions of pounds.