Amigo appoints new chairman signals shift to mining sector

Amigo Holdings, once a leading subprime lender in the United Kingdom, has appointed Australian entrepreneur Craig Ransley as its executive chairman, marking a strategic move towards the mining industry as the company’s future as a shell operation takes shape.

Ransley, an executive with experience across mining, labour hire, and energy, is set to reposition the dormant lender with a focus on gold and rare earth mining opportunities, primarily in Africa. In particular, Tanzania and Mauritania have been highlighted as regions of potential exploration and investment, as Amigo pivots away from financial services.

Amigo, valued at £1.3 billion upon its stock market debut in 2018, has contracted to near £3 million after the Financial Conduct Authority censured the group in 2023 for failing to carry out adequate affordability checks, resulting in unaffordable debts for many borrowers. Following these regulatory issues, all of the company’s operational units were placed in solvent voluntary liquidation, leaving Amigo with only limited cash assets.

As the company seeks to remain listed, it has been searching for takeover or reverse merger opportunities for some time, reflecting broader trends in the mining sector where consolidation and the pursuit of critical minerals have intensified. Recent mining industry activity, such as Anglo American’s £53 billion merger with Teck Resources, underscores the attractiveness of minerals like copper, as well as gold and rare earth metals.

In his appointment statement, Ransley noted the significance of the moment for Amigo and emphasised his commitment to steering the business into a new sector. He will receive a salary of £200,000, which will be used entirely to purchase shares in the company, following his instrumental role in raising £1.5 million from investors that triggered his appointment.

Nick Beal, the chief executive, confirmed in the annual report that the search for mining-related transactions remains a key objective. Outgoing chairman Jonathan Roe, who will stay on as senior independent director overseeing corporate governance, welcomed Ransley’s proven track record but cautioned that a successful transaction is not guaranteed.

Founded by James Benamor to provide guarantor loans to those with poor credit histories, Amigo’s dramatic fall in value highlights the risks of regulatory non-compliance and market shifts in financial services. Its shares recently fell nearly 5 percent to 0.43 pence, underscoring the uncertainty that continues to surround its prospects.