Equity Markets to Change the Mexican Mining Landscape

Q: How have companies listed on the Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) with operations in Mexico performed over the last two years?

A: Since 2002, the global mining sector has grappled with challenges due to an economic crisis that has impacted all sectors in equity markets worldwide. The upsurge in interest rates coupled with the challenging global economic environment, has created a challenging environment, especially for equities markets. This difficulty is not limited to our listed mining companies, it extends to all mining and corporations focused on other sectors as well.

In addition to economic challenges, geopolitical tensions have played a significant role. The ongoing war in Ukraine is impacting global markets and the economy, adding to the headwinds. Despite the mining sector’s robust fundamentals, the backdrop of geopolitical and global economic challenges is exerting extreme pressure on global equity markets. In many cases, global indices confirm the difficulties equity markets face. Companies, including those in the mining sector, have endured a tough period, but there is optimism that the worst may be over. Many economic analysts are expecting interest rates to ease or lowering by the middle of 2024. 

Q: What percentage of companies listed on TSX and TSXV have operations in Mexico? 

A: Mexico holds a substantial role in our projects and we gauge companies' exposure based on the number of projects in different countries, rather than a direct-country approach. Mexico's mining jurisdiction has consistently been robust. In 2023, 124 projects represented over 10.33% of our over 1,200 listed companies. Beyond Canada and the United States, Mexico stands out as one of our top jurisdictions. 

Q: What approaches can companies adopt to increase their attractiveness in financial markets? 

A: The approach companies can adopt has not changed significantly over the years and essentially revolves around good business practices. Companies that embrace responsible mining, act as partners in their operating environments, and adhere to leading ESG practices tend to attract attention. In a market rebound, investors are inclined to favor low-risk companies that prioritize responsible mining, which are often categorized as ESG-responsible firms.

Companies can also engage in active marketing strategies to market their projects, showcasing results, and selecting a stock exchange that aligns with their goals, which increases visibility with potential investors. Many of our junior companies benefit from our internal mentorship programs (such as our Growth Accelerator program), which serve as a benchmark for educating companies on best practices in marketing, communication, ESG reporting, disclosure, etc. This program is crucial in addressing the significant challenges faced by junior companies, helping them navigate communication strategies and adhere to ESG reporting best practices among other needed tools and skills for success in the public capital markets.

Q: How have the Canadian government's past actions regarding Chinese-controlled investments in specific companies affected the broader landscape for listed businesses?

A: Canada is not as restrictive to Chinese investment as some headlines may suggest. About a year and a half ago, the Canadian government identified three companies with investors deemed to be significantly influenced by the Chinese government. In the interest of national strategy, these investors were asked to remove themselves from the companies' capital structure. This action happened only with those three companies perceived to be Chinese government-controlled. Canada does not generally have restrictions on Chinese-based investors for companies listed on the stock exchange. Many issuers, both large and small, receive Chinese investments without any impediments.

Chinese investors are making major investments in Canadian companies, with some launching joint ventures. For example, Ivanhoe Mines, a large company with a multibillion-dollar copper project, has one of the largest Chinese-based mining giants, Zijin Mining, as an investor/partner. A couple of months ago we also saw Zinjin announce an investment in another one of our issuers exploring in Ecuador. 

I encourage everyone to look beyond sensational headlines. Our listed companies continue to get interest from global investors, whether it is financing or mergers and acquisitions.

Q: What are the primary factors influencing mining companies’ performance in equity markets?

A: There is a consensus that the performance of equity markets is heavily influenced by interest rates. A shift from lower to stabilized interest rates, coupled with controlled inflation, is expected to make equity markets more attractive. Despite external challenges, the sector remains optimistic due to strong fundamentals, such as the growing demand for critical minerals driven by the global energy transition theme.

Companies focusing on energy transition, including those with projects in Mexico are poised for growth. The constrained supply of critical minerals creates encouraging prospects for the sector, as demand is only growing. However, external stability is a key missing element, particularly concerning global economic and geopolitical challenges. Volatility in the markets is a persistent concern, but companies are advised to stay focused on the fundamentals: balancing high demand with limited supply within the context of responsible mining of course.

Looking ahead, companies are encouraged to position themselves on TSX and TSXV to leverage medium and long-term fundraising and M&A opportunities. Despite the ongoing volatility, being in a reputable, stable, and globally recognized stock market facilitates capital raising during periods of opportunities or market windows. A strategy for navigating the unpredictable market is to be prepared and properly located to leverage periods when the market opens up..

Q: What are TSX’s plans for the next five years? 

A: We plan to attract more mining companies, particularly from Mexico, and expand globally, not only with our listed companies but with the investors participating in our markets. We want to expand the global pool of investment capital for our mining companies.  To achieve this, we plan to increase our marketing efforts and presence in Mexico and other regions. We have an on-the-ground presence in Australia and Latin America, with a regional representative in Sao Paulo, Brazil. We plan to be more active in Mexico. We aim to engage with large mining companies in the country and promote Toronto, Canada, as the global center of mining. Our goal is to enhance our service offering and become stronger partners with mining companies in navigating challenges that may arise in the coming years.

By telling the compelling stories of mining projects in Mexico to global investors, we aim to foster close partnerships with the country. Our ultimate objective is to attract more companies with projects in Mexico and strengthen our role as a global equity market.

Q: What are the main advantages that Mexican companies can gain from being listed on TSX or TSXV?

A: The first advantage is access to global capital within a mature community with a history spanning close to 200 years. Canada's stable financial system, known for weathering global financial shocks, provides a strong foundation for companies seeking a reliable stock market. Joining this ecosystem means becoming part of the exchange with the most mining companies globally. This brings benefits such as access to analysts and support services like mentoring through our growth accelerator program for junior companies, investment bankers, etc.

We have a unique two-tiered ecosystem that allows companies of any size, to join and grow. Many companies start on TSXV, a robust and active market where companies may graduate to the senior market as they grow and enter a new stage of growth or actual production. This dynamic two-tiered ecosystem is unlike any in the world, offering a pathway for continuous growth. Our robust track record, both in terms of the sheer number of listed companies and the capital successfully raised, puts TSX and TSXV as the foremost choices for mining companies and investors seeking stability and unparalleled growth prospects.


TMX Group, owner and operator of TSX and TSXV, is a financial services company that builds digital communities and analytics solutions that facilitate the funding, growth, and success of businesses, traders, and investors. It also offers depository services, technology solutions, data products, and many other services.