Gold and silver mining companies have raised their highest amount of capital in over a decade through stock sales last year, with smaller firms leading the way as precious metal prices increased.
According to data compiled by Bloomberg, companies listed on U.S. and Canadian exchanges brought in over $6.2 billion last year, marking the largest sum in at least twelve years.
A significant portion of this activity came from stock offerings by small and medium-sized mining companies. For example, Hemlo Mining Corporation, which trades on the TSX Venture Exchange and has a market cap of C$1.5 billion (around $1.1 billion), secured $489.7 million in September, making it the sector’s largest deal. Following that, Perpetua Resources raised $374 million, while NovaGold Resources garnered $206 million.
“These companies are raising funds when they can, not necessarily when they want to,” remarked Brian Madden, chief investment officer at First Avenue Investment Counsel. Many miners seem eager to pursue new projects, but perhaps a more stable increase in commodity prices is necessary. Madden noted that his firm is focusing on investing in larger gold mining companies that haven’t had to develop markets recently.
Interestingly, larger mining companies like Newmont, Barrick Mining, and Agnico Eagle Mines stayed on the sidelines, choosing not to sell shares even amid record highs in 2025. Instead, many took advantage of the boost in cash flow from rising commodity prices to buy back their own shares.
This trend of smaller companies raising capital while larger firms buy back shares is a favorable sign for investors and likely to persist into 2026.
Brooke Thackray, an analyst at Global X Investments Canada, mentioned that while smaller companies will continue to attract most of the funds, it’s unlikely we’ll see a major shift where larger companies pursue mergers aggressively. That would indeed be quite a dramatic change.
Thackray also pointed out that in earlier years, large gold miners would typically take such opportunities to offload shares for funding acquisitions or growth projects in uncertain regions. It’s refreshing to observe companies like Barrick exercising capital discipline during the current economic climate.
“They’re being very responsible right now,” he added. “They’re not going out and doing anything reckless.”
This careful approach supports a favorable market environment for small to medium-sized gold miners seeking to raise funds. “If smaller businesses want to expand, and investors are keen to grow, they must have access to considerable capital, and appealing to equity has proven the best method,” stated Daniel Nolan, managing director of equity capital markets at National Bank Capital Markets.
Most of last year’s deals were oversubscribed, which Nolan attributes to a mix of investor appetite for precious metals and miners effectively articulating plans for the proceeds. Additionally, companies often offered shares at discounts exceeding 3.5% to attract investors.
“Things have a sale price, but in most cases, you’re still selling at a relatively high stock value,” he noted.
Nolan anticipates that the rapid pace of stock trading in the mining sector will carry on well into 2026, or at least begin to pick up.
“We expect to continue progressing from where we left off at the end of last year,” he said.
