Ignored by Big Banks, Smaller Gold Miners Are Paying More to Expand
- Size matters in getting the attention of commercial banks
- Private funders offer more insight, but debt costs are high
Molten gold is poured into molds.
Photographer: Carla Gottgens/Bloomberg
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The cost of money is rising for small and mid-sized gold miners.
Newmont Goldcorp Corp. and Barrick Gold Corp., the biggest producers, have grown even bigger by buying up peers, shaping themselves as strong candidates for commercial bank lending. Meanwhile, smaller companies struggling to meet deadlines and budgets on new projects are increasingly forced to turn to private equity to expand.