Toronto Stock Exchange

Competence center for mining & mineral resources

Leading Stock Exchange for Mining Finance

The Toronto Stock Exchange (TSX, formerly the TSE) is the largest stock exchange in Canada, the third largest in North America, and the seventh largest in the world by market capitalization. Based in Toronto, it is owned by and operated as a subsidiary of the TMX Group for the trading of senior equities. Toronto is a global hub for mining finance as more mining and oil & gas companies are listed on the Toronto Stock Exchange than on any other stock exchange.

More than 50% of the world’s public mining companies are listed on the Toronto Stock Exchanges TSX and TSX-Venture. The TSX and TSXV handled 53% of the world’s mining equity transactions in 2016, and together raised 47% of the world’s mining equity capital that year (see figure 1). The Toronto Stock Exchange traded almost $189 billion in mining stocks in 2016.

Figure 2: Overview (Source: TMX Group – A Capital Opportunity, 2015, Presentation)

Figure 3: Overview (Source: TMX Group, 2018)

In February 2018, 1210 mining companies were listed on the TSX and TSX-V with a total estimated value of over $298 billion. 221 mining companies are listed on the TSX (not TSX-V). These companies, together valued at $275.5 billion, raised more than $4 Billion in equity capital in 2016.

The remaining 989 mining companies listed on the TSX-V. In February 2018, they were valued at $23 billion, raising $5.35 Billion in equity capital – just above 43 percent of the overall total of equity raised.

TSX-listed mining companies mainly deal in gold, potash, uranium, copper, silver, nickel, iron ore, coal and diamonds. Most of the projects involve exploration, and very few will turn into operating mines. However, the projects listed at the Toronto Stock Exchange cover all project stages in the mineral resources industry (see figure 2).

Figure 4: Mining Projects (Source: TMX Group �“ Guide to Listing, 2017, Presentation)

Global Impact of TSX listed Mining Companies

TSX-listed mining companies have a strong global focus and impact. As of 2017, the 1,210 TSX mining companies (see figure 1) were involved in 6,351 mineral projects worldwide and the equity raised on the TSX financed mining projects on all continents (see figure 4).

Let’s take a closer look at the two biggest destinations of TSX/TSX-V listed Mining Companies, Africa and Latin America. In 2015, 315 Latin American mining companies raised $2.2 B for 1169 mining projects in Latin America alone (Figure 5). In Africa, the Top 5 Countries alone are home to 237 Mining projects. While the more mining companies operating in Africa are listed on the ASX than on the TSX/TSXV (156 and 132 respectively), the Canadians own more property (492 versus 467) (Figure 6).

Figure 6: Mining in Africa (Source: TMX, November 2016)

Furthermore, Canadian-headquartered mining companies accounted for nearly 32% of budgeted worldwide non-ferrous exploration expenditures in 2016, which were spent on projects within Canada and in over 100 countries worldwide (Source: The Canadian Trade Commissioner Service, 2018).

However, mining exploration companies are currently facing challenges in raising capital. According to data collected by SNL Metals & Mining, the worldwide exploration investment in 2016 fell by 20% to US$6.86 billion for non-ferrous metals. It is even worse if we compare this to the record year 2012, when investment was in excess of US$20.5 billion which constitutes an overall decrease of 66% within the last four years (MAC, 2017). Although global economic prospects have improved over the past five years, the road to full recovery in advanced economies is still bumpy. This uncertainty is reflected in the hesitation of banks to finance (often risky) mining exploration projects. Combined with reduced mineral demand and lower commodity prices, this uncertainty affects the availability of capital for the development of mining projects.

canada-mine-wpToronto Stock Exchange