Could you update us on recent activities in South America?

In 2019, the Exchanges established a full-time presence in Latin America to connect mining, energy, and innovation projects with investors. Latin America is the most active mining jurisdiction outside of Canada, with 410 issuers and 1,067 assets and properties on the continent. Brazil ranks fifth in Latin America, with 34 companies with 95 mining projects in the country. Given its size, this makes it a relatively under explored jurisdiction represented on our Exchanges, underlining its potential. Although there is significant potential for growth in Brazil's mining sector, we need to promote it further to facilitate capital access for local entrepreneurs. Recently, we have seen increased activity in mining, with 29 new mining listings on TSX and TSXV this year as of June 2024, raising US$6.8 billion of the total US$12.2 billion raised across all sectors. The main focus in Latin America is on critical minerals, and the clean energy transition. The Sigma Lithium listing and subsequent success on our markets has helped to see an increased interest in the region.      

What is the interest of TSX in other South American markets?

Argentina has shown significant activity, especially in the lithium sector. In 2023, we had 51 TSX and TSXV issuers with 166 properties in Argentina, primarily in pro-mining provinces like Catamarca, San Juan, and Jujuy. Despite political uncertainties, these provinces have attracted substantial mining investments. Interestingly, Argentina now has more companies listed on our Exchanges with more projects than Chile. 

Could you elaborate on the rare earth sector in Brazil?

Investors are beginning to understand the rare earth sector more and seeing its long-term growth potential. We also see interest from Australian companies with Brazilian properties raising capital in North and South America due to the same time zone. We have a full-time presence in Australia to assist ASX-listed issuers in dual-listing on TSX. 

What are the main challenges in raising capital for mining companies?

Raising capital involves three key pillars: asset quality, management quality, and ESG compliance. A National Instrument 43-101 compliant technical report is essential for assessing a projects’ potential. Quality management teams, ideally with a mix of local and international expertise, are vital. ESG considerations are increasingly critical. TSX provides tools to help companies communicate their sustainability efforts effectively. We emphasize that significant value can be created in the pre-operational phase, encouraging early-stage projects to list on TSXV. Brazil's capital markets are strong but lack the mining expertise of global mining Exchanges. The Brazilian market realizes the need to support the clean energy transition locally. Companies like Aura Minerals and Sigma Lithium have issued Brazilian Depositary Receipts after listing on TSX. Interconnected markets are crucial, and while Brazil has abundant capital, developing a local investor base with mining expertise will take time.    

Could you elaborate on ESG requirements and the regulatory environment in Brazil?

The regulatory environment in Brazil is indeed stringent regarding environmental regulations. At TSX, we provide our issuers with all of the necessary tools to communicate the sustainability aspects of their business effectively. This is not about restrictions but about ensuring transparency and proper communication with the market. Nearly 95% of our mining issuers now have sustainability reports. We have initiatives like ESG 101 to help issuers meet these requirements. We support companies in fulfilling their ESG mandates and effectively reporting on their sustainability practices.

Can you discuss the TSX’s priorities and activities for the next 12 months in Brazil?

In Brazil, the focus of TSX and TSXV is extending beyond mining to energy and renewables. At the recent Brazil Lithium Summit, the importance of renewable energy was evident. Canada is a strong and established market for energy and renewable projects, which can spur activity in other jurisdictions across the Americas. We aim to attract renewable energy projects, starting with 100 MW producing assets, to raise capital in Canada. The synergy between mining and renewable energy is vital, particularly for decarbonization. Brazil's clean energy potential in wind and solar attracts investors. Promoting the clean energy transition is more accessible than promoting mining, given the negative perception of mining. However, mining is integral to the clean energy transition, and renewable energy can help decarbonize the mining industry.