What makes the ASX an attractive option for mining players?

ASX is a global resources hub, with more than 880 companies having a combined market cap of over AU$912 billion (US$611 billion). The resources sector is the largest sector on ASX. It represents about half of all listed entities by number and about one third of the AU$3 trillion (US$2 trillion) total market capitalisation of companies listed on the ASX. 

ASX is an attractive exchange on which to gain investor attention and raise capital, this is driven by a number factors. There is a growing pool of capital in Australia which underpins the virtuous circle that helps drive ASX listings. The Australian pension system – locally known as superannuation – is the world’s fifth largest with assets just shy of AU$4 trillion (US$2.7 trillion) which are forecast to grow to AU$11 trillion (US$7.4 trillion) in the next 20 years. 

We have a long history of supporting companies over a range of sectors and sizes, and resources companies have been a very significant part of that. For Metals and Mining, ASX is ranked first globally by total market capitalisation, IPOs and capital raisings. As a result ASX has a deep and highly sophisticated investor base for the resources sector and provides access to a global investor base.

ASX boasts the two largest listed mining companies globally: BHP (ASX:BHP) and Rio Tinto (ASX:RIO). BHP was the first company to list on ASX in 1885. 

ASX has a deep and diversified resources sector by operations, size and geography. This is supported by a specialist,   highly skilled, experienced and deep investor, banker and broker coverage base.   

The ASX has outperformed its peers in terms of IPO activity in recent years. Could you comment on your recent performance in terms of origination and new listings and how does the IPO cycle pan out for 2025-2026?

There have been over 120 Metals and Mining IPOs on ASX in the past three years raising in aggregate over US$1.1billion in IPO capital – this ranks ASX 1st globally for number of IPOs in this industry sector. The resources sector has continued to be highly active, even during the global IPO downturn. In the 24 months to September 2024, 65% of ASX IPOs and 60% of follow-on offerings were in the resources sector. 

In addition, there have been 1,851 follow-on offerings, raising over US$20.7 billion in capital for ASX listed Metals & Mining companies in the past three years.

As can be seen from the IPO and follow-on activity, ASX has not suffered from similar trends other markets have experienced where resources investors have switched to a greater risk off stance, and the ecosystem for resources listings and capital raisings is as strong as ever. 

We have also witnessed this with a number of dual listings to our market. Examples include TSX-listed Capstone Copper (ASX:CSC) and NYSE-listed Metals Acquisition Corp (ASX:MAC) dual listing on ASX. In addtion, Newmont, Alcoa and Arcadium all dual listed as a result of M&A activity. These companies all recognised the addition an ASX listing can give to their global share register and the sophistication of the ASX resources investors.

We continue to see strong interest globally for listings on ASX to gain access to the deep and sophisticated pool of investors on ASX; unrivalled by other exchanges. Where ASX really shines is the access to follow-on capital and the ability to raise capital quickly and efficiently once listed. For six years consecutively, ASX has had the highest number of follow-on capital or secondary raising transactions globally. 

How has the risk appetite and understanding of Australian investors is evolving in relation to African resource opportunities?

There are 113 ASX-listed mining companies that own or operate properties across Africa, encompassing a total of 266 properties. Key examples amongst gold miners are Perseus Mining ans West African Resources. Both companies have successfully raised additional capital on ASX to fund their growth.