Expertise of the Industry Within the ExchangeMon, 10/22/2018 - 12:37
Q: What trends have TSX and TSXV identified with the participation of the mining industry in the stock exchange?
A: From a stock exchange standpoint and taking into consideration the trends that drove the markets in 2017, we saw that lithium, cobalt and battery metals in general were major market drivers, which are all part of the vehicle electrification shift. We also saw price movements in certain commodities such as zinc driving market activity. Looking ahead, the most important thing for the mining sector is to get back to delivering returns for investors.
The numbers were fairly consistent for raised capital in the mining sector. But in 2017, we noticed optimism in the mining industry in two main ways. First, we saw momentum of new offerings in the market through IPOs and new listings. And secondly, we saw a return to companies seeking out dual or additional listings to support their capital and liquidity needs. Last year was the first time in a few years we saw companies list either on the London Stock Exchange or Australian Stock Exchange and added a TSX or TSXV listing, showcasing capital access and attracting more investors. These were two key signs of confidence returning to the market that we hope continue well into 2018.
Q: What relationship does TSX and TSXV have with the Mexican mining industry?
A: We strive to have a good working relationship with the Mexican mining industry. In 2017, we had 127 TSX and TSXV companies that have 392 projects in Mexico so the relationship is a very significant one. Communication is important, considering the integration that exists between Mexican and Canadian companies. Canada and Mexico have a symbiotic relationship as Mexicans value the capital and expertise Canadian companies are bringing to the country and Canada appreciates the skill-set and knowledge of Mexican workers. We are continuously having healthy discussions with our colleagues at the BMV and share ideas about different issues in the market.
Q: How do TSX and TSXV differentiate themselves from other stock exchanges around the world?
A: One of our main differentiators is the geological expertise that has been built within Canada. This technical expertise includes the development side of the industry as well as the investor and regulatory side. But it all starts with this expertise. When a company goes public in Canada, a technical report called National Instrument 43-101 prepared by a third-party geologist is required. This in turn is vetted by geologists both at the provincial securities commission and our exchange. Investors are assured by the fact that the technical reports they are receiving have been vetted by a number of professional geologists, both internally and outsourced. These reports provide clarity on what companies are doing, what their reserves are and their worth in the market.
Being public is definitely a challenge, and companies need to carefully prepare and think about the implications for their business. But companies listed on TSX or TSXV are able to access capital from around the world. Companies need to know that their listing is not limited only to Canadian capital. We constantly monitor what investors look for in companies and we often find that TSX or TSXV listings are a high priority thanks to our National Instrument 43-101 (covering disclosure) and the regulatory landscape as a whole in Canada. All companies on our markets have a technical report built around the same principles so investors are able to compare projects in a unique way.