The Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV), on a combined basis, are world leading hubs for African mining finance, having raised C$1 billion of equity capital in the first half of 2015 for African projects alone, TSX head of business development for Europe, Middle East and Africa, Graham Dallas tells Chantelle Kotze.
Forming a part of the integrated, multi-asset class exchange group TMX Group, TSX and TSXV are the leading exchanges with regard to the number of listed mining companies worldwide – totalling 1 318 on 31 December 2015 out of a global estimate of 3 300 listed entities on the exchanges.
This is compared with 651 mining companies listed on the Australian Securities Exchange (ASX), 170 listed on the London Stock Exchange (LSE) and AIM submarket, as well as 43 on the Johannesburg Stock Exchange (JSE).
Taken together, TSX and TSXV are also the global leaders in the amount of mining equity capital raised for the mining industry, having raised $106 billion, or 54%, of the total value of mining equity capital raised between 2010 and 2014.
This is compared with 17% of the total value of mining equity capital raised on the LSE/AIM and 14% on the ASX. Africa TSX and TSXV listing breakdown Speaking at the 9th Annual Investing in African Mining seminar in London hosted by Africa-focused business development, marketing and educational company MineAfrica late in 2015, Dallas pointed out that TSX is host to 45 mining companies with properties in Africa, with an additional 73 mining companies listed on TSXV with projects on the African continent. “Of the 1 318 listed mining companies, 118 are mining in Africa, and own and operate 469 properties. The projects and properties are located within 37 African countries, six of which are in northern Africa, 89 in western Africa, 27 in central Africa, 38 in eastern Africa and 37 in southern Africa,” says Dallas.
A good place to list
“As a large producer of several of the world’s important minerals and metals, including zinc, uranium gold, nickel, aluminium and lead, Canada has a strong equity culture, particularly around resource industries, which makes it a good place for mining companies to go to be listed,” says Dallas.
The amount of capital raised on TSX and TSXV over the past 10 years, between 2005 and 2015, totals $114 billion. This, Dallas believes, demonstrates the remarkable strength and stability of Canada’s leading exchanges despite several global pressures and challenging commodity prices. Dallas, who has worked in the capital markets of London, Europe and Hong Kong, says that 53% of the global number of equity financing transactions took place on TSX and TSXV while the boards were also responsible for 34% of global equity capital raised in mining as at December 2015.
The TSX and TSXV exchange market structure and feeder system is significant when taking into account the sheer number of companies that started in the more “junior” board on TSXV and eventually graduated up to the “senior” market on TSX, notes Dallas. He points out that over 600 companies, including 266 mining companies, have moved from the TSXV to the TSX in the past 15 years.
Diverse mining base
The TSX and TSXV exchanges are home to mining projects at diverse ends of the project stage. The number of projects at the exploration stage total 1 039, while 834 of the projects are at an advanced exploration stage. The number of mining projects in production is 206, while the number of projects in development total 104.
There has been a slight increase in the number of de-listings by mining companies on the TSX and TSXV exchanges as of late, owing mainly to acquisitions and at the request of listed companies, and lesser so because of a failure to meet the listing requirements.