"We have a world class mining ecosystem built on the fact that Canada is a mining country."
What makes Toronto Stock Exchange the preferred exchange for junior mining companies?
Over the past five years, 35% of equity financing for mining went through our marketplace, and 42% of equityfinancing occurred through our markets. The ability to raise capital is of paramount importance to junior mining companies.
The other key consideration is our location. There is an element of stability that Canada provides from a financial,economic and regulatory standpoint when you consider the ability to endure global economic and geopolitical shocks. A final factor is the ecosystem that we have built in Canada over the past 170 years; it is one that is significantly important for mining companies that are trying to get their stories not only seen but also correctly understood. We have over 250 global analysts covering companies that are listed with us, in addition to the many bankers and technical professionals involved in and supporting our sector. We have a world class mining ecosystem built on the fact that Canada is a mining country.
To what extent do TSX and TSXV serve the needs of the full spectrum of mining companies?
Between the TSX and TSX Venture Exchange we have a place for most companies regardless of stage. What is great and different about our two-tier system is as companies grow and gain scale, they may choose to seamlessly move up or graduate to the senior market. Close to 50% of companies on the TSX started out on the TSXV, and approximately 20% of those companies that graduate have gone on to be included in the S&P/TSX Composite Index. Our innovative growth accelerator program helps our prospective and existing companies prepare for the changing demands of global investors and stakeholders, with teaching/coaching modules on ESG reporting; effective investor relations strategies; disclosure requirements; etc. We partner with our clients before they even get listed, preparing them to be a successful public company. .
What regions of the world are you seeing capital flow into?
No one can deny that Canada, Australia, and the US are the safest jurisdictions in mining. However, when you look at the significant demand for battery metals, you will find that the flow of capital is really following these commodities. As the fundamentals continue to support the significant demand for certain commodities, investors are willing to support projects in all jurisdictions, hedging any heightened jurisdictional risks by carefully considering other factors, particularly management teams with experience. If the project is attractive and the management is right, capital will follow. An old perspective but still true today. .
Can you speak to industry efforts to reward all stakeholders?
Any efforts to capitalize on the energy transition trend must be in the context of ESG/responsible mining and not leaving any stakeholders behind. Mining is ahead of most other sectors in modernizing its interaction with its stakeholders. That interaction has evolved beyond just pacifying stakeholders, while rewarding shareholders. The longevity of social licenses and the consequent lowering of operational/investment risks is optimized when the strategy is to partner with and reward all stakeholders. This partnership approach with stakeholders embraces ESG, but extends into a broader responsible approach to mining - realizing generational benefits through skills and wealth creation. It certainly will enable more people to relate to the contribution of mining to society. The world’s eye is now so far reaching that this strategy has to be implemented for all groups at all corners of the globe.
What have been some of the most notable deals that have occurred on TSX in recent years?
In 2020, Newcrest Mining added a TSX listing that they needed to raise their profile as they continued to execute on their strategy to expand and diversify their project portfolio globally. A year after the TSX-listing, they announced the significant acquisition of Vancouver-based Pretium Resources. Earlier this year, another notable event was Gold Fields. Gold Fields also announced their intent to add a TSX listing as well. Our expectation is that more global companies will continue to expand; diversify and grow through our global markets.