What are the highlights of the past year at the TSX and TSXV?

In mid-2022, we launched the S&P/TSX Energy Transition Materials Index, which tracks exploration and production stage companies that focus on critical minerals needed for the green energy transition. This summer, BlackRock launched and listed the iShares S&P/TSX Energy Transition Materials Index ETF based on our index. This offers more investors, particularly retail investors, an opportunity to gain exposure to the companies at the root of the global green energy transition.      

In October 2023, we launched the TMX ESG Data Hub in response to the needs of investors seeking ESG data on companies. 

Despite a challenging 2023, we saw two significant new mining listings: Lithium Royalty Corp and Allied Gold. These listings underline how much critical minerals continue to influence the sector globally. 

How have TSX-listed African mining firms performed in 2023 and do you foresee more consolidation in this scene?

Historically, Africa has been mostly known for its precious metals, but recently we are seeing Africa’s rise as a critical jurisdiction for green energy transition materials. Africa-focused companies continue to do well in our markets because our market participants know Africa and are comfortable and confident in connecting investors with the vast opportunities the continent presents. Allied Gold's recent listing on TSX exemplifies this well. In a very challenging market, Allied Gold, which is focused on West Africa, raised close to C$300 million this summer. In the past, we saw London as the main competition for African companies. Allied Gold’s decision to list on the TSX underscores Toronto’s position as a leader on the global stage, with our mining ecosystem and thanks in part to its seamless connection to the large American investor base looking to access global mining equities.

In terms of consolidation, we are seeing a global trend of companies realizing they need to increase their size or scale to improve operational efficiency, for example. In addition, many companies are looking to add to or diversify their project base, sometimes on a geographic or commodity basis. As this plays out, M&A will be a big factor going forward.

What advice do you have for mining companies considering an IPO considering the current economic climate?

There is an inherent degree of optimism and resilience in mining. I think mining companies must lean on this and remain certain that the fundamentals are there, despite the current headwinds such as micro/macroeconomic challenges and geopolitical tensions. 

Nowadays, with uncertainty and volatility in the capital markets, the windows of opportunity to raise capital and/or enter the public markets have been reduced from years to months. Companies must be prepared and ready to move on short notice. Do all you can to prepare, despite the uncertainty of when that window will open. The key is to be prepared to move quickly. Our pre-listing services are there for companies to prepare them for public life.

~40% of public mining companies worldwide are listed on TSX or TSXV. How do you intend to maintain this dominance going into 2024?

We pride ourselves on being a market for all mining companies regardless of stage in the life cycle. Our overarching strategy at TMX Group is to be client-centric in our business lines. We achieve this through three key areas: innovation, advocacy, and quality of service. 

On the advocacy front, TMX CEO John McKenzie recognized early in his tenure that there is an opportunity for TSX and TSXV, as leaders in the global mining sector, to use our position to advocate for Canadian capital markets getting better, which includes advocating for our clients – the foundation of this market. We have already seen positive signs of these efforts with the federal and provincial governments, with increased incentives to encourage participation in the critical minerals space for example. 

Finally, our internal processes are continually being improved to better serve our clients. Our adoption of new technologies/efficiencies in listing processes along with programs like our Growth Accelerator service which mentors our early-stage companies on key success factors as a public company.