There is no doubt that the TSX is a favourite of mining companies from around the world, with almost 50 per cent of the world’s public mining companies are currently listed on the TSX and TSXV.
As of August 31, 2020, there were 1,129 mining companies listed on both TSX and TSX Venture Exchange, with a combined market capitalisation of C$523 billion, including 95 international mining companies with a combined market capitalisation of C$105 billion.
Currently, the TSX and TSXV are home to more mining companies than any other market in the world, which companies benefitting from having greater access to capital, visibility of transactions, analyst coverage, specialised indices, and tailored listing requirements for all sizes of companies.
Big hitters
With a fabulous golden wealth in its home of Canada, and investors which truly understand the precious metal markets game changing ability, it is no surprise that the S&P TSX Gold Index consists of 128precious metal mining companies traded on the Toronto Stock Exchange (TSX).
This includes five of the world’s leading gold producers, names such as Agnico-Eagle (TSX: AEM), Barrick Gold (TSX: ABX), Kinross (TSX: K), Newcrest (TSX: NCM) and Newmont (TSX: NGT).
Newcrest Mining Limited, Australia’s largest gold producer, created headlines when it began trading on the TSX in October 2020.
One of the world’s leading gold producers and Newcrest is now one of the largest companies that trades on TSX by market capitalization.
Headquartered in Melbourne, Newcrest owns and operates mines in Australia, Papua New Guinea, and Canada.
Newcrest Managing Director and Chief Executive Officer, Sandeep Biswas, said a North American listing is part of the company’s strategy of pursuing growth in the Americas following its 70% acquisition of the Red Chris mine in Canada in 2019 and its investments in Ecuador.
“We have observed an increase in interest from North American investors in the gold sector over the last six months,” Mr Biswas said.
“When combined with our large existing North American shareholder base it makes sense for Newcrest stock to be able to be traded in this time-zone. We believe the TSX listing will improve the global visibility of the Company and broaden our access to the large North American capital pool.”
Juniors
Junior miners also continue to play a major role on the TSX.
When the TSX Venture Exchange (TSXV) recently announced its 2021 Venture 50 it noted that mining saw the largest market capitalization increase of all the sectors with a 1,092%jump in the past year.
The Exchange’s annual programme showcases the top performing listed companies from five industry sectors: Clean Technology and Life Sciences, Diversified Industries, Energy, Mining, and Technology.
The 2021 Venture 50 winners were selected based on year-over-year performance across three equally weighted criteria: market capitalisation growth, share price appreciation and trading volume for the year ended December 31, 2020.
Loui Anastasopoulos, President, Capital Formation and Enterprise Marketing Officer of TSX owner the TMX Group, said the Venture 50 celebrates important success stories from across the TSX’s diversified issuer base.
He noted that overall, this year’s companies had the highest share price increase (406%), as well as the highest market capitalisation increase (709%) since 2011.
The Top 10 Mining Companies on the 2021 list are:
1. American Lithium Corp. (TSXV: LI): American Lithium Corp. is a Canada-based exploration-stage company. Principally, it is engaged in the acquisition, exploration, and development of lithium deposits.
2. Cabral Gold Inc. (TSXV: CBR): Cabral Gold Inc. is a junior resource exploration company. It is engaged in the identification, exploration, and development of mineral properties, with a primary focus on gold properties located in Brazil.
3. Sterling Metals Corp. (TSXV: SAG): Sterling Metals Corp. is engaged in the mining and exploration for silver and base metals. The projects include Sail Pond and Butt Township.
4. Outcrop Gold Corp. (TSXV: OCG): Outcrop Gold Corp. is a Canadian company which is active in the natural resource sector. It is engaged in the acquisition, exploration, and development of mineral properties. The company primarily focuses on gold exploration.
5. Prime Mining Corp. (TSXV: PRYM): Prime Mining Corp. is engaged in the acquisition, exploration, and development of mineral resource properties, primarily targeting high-value and specialty metals. The company’s projects include Los Reyes, Magenta, and others.
6. Nouveau Monde Graphite Inc. (TSXV: NOU): Nouveau Monde Graphite Inc. is a mineral exploration company. The company only operating segment is the acquisition, exploration, and evaluation of mining properties and all of its activities are conducted in Quebec, Canada.
7. enCore Energy Corp. (TSX: EU): enCore Energy Corp., together with its subsidiary, is engaged in the acquisition and exploration of resource properties. The company holds the Marquez project in New Mexico as well as the dominant land position in Arizona with additional other properties in Utah and Wyoming.
8. ZEN Graphene Solutions Ltd. (TSXV: ZEN): ZEN Graphene Solutions Ltd. is a mineral development company. The company is engaged in the acquisition, exploration, and development of properties for the mining of precious and base metals.
9. Aurcana Silver Corporation (TSXV: AUN): Aurcana Silver Corp. is engaged in the exploration, development, and operation of natural properties. The company’s reportable segments are Ouray Project, Shafter Project, and Corporate and other segments.
10. Max Resource Corp. (TSX: MXR): MAX Resource Corp. is engaged in the acquisition and exploration of mineral properties in Canada and Colombia. Its projects include Choco project, Cesar project, Gachala project and North Choco Project.
Other indexes
Mining companies also performed strongly when the TSX listed its 2020 TSX30 with close to 50% of the businesses named representing the mining sector.
The TSX30, a flagship programme of the stock exchange, showcases the TSX’s 30 top-performing stocks that represent sustained excellence over the long term. Founded in 2019, the TSX30 ranks stocks based on dividend-adjusted share price appreciation over a three-year period. Companies from the mining sector were included in some of the largest growth stories in the ranking.
Fourteen, or nearly half, of the Toronto Stock Exchange’s 30 top performers on the TSX30 2020 ranking are mining companies, according to TMX Group.
The ranking showcases TSX’s 30 top-performing stocks that represent sustained excellence over the long term. Founded in 2019, the TSX30 ranks stocks based on dividend-adjusted share price appreciation over a three-year period.
Mining companies on the list included Champion Iron (TSX: CIA), Dundee Precious Metals (TSX: DPM), International Tower Hill Mines (TSX: ITH), Kirkland Lake Gold (TSX: KL), Lundin Gold (TSX: LUG), Orla Mining (TSX: OLA), Sandstorm Gold (TSX: SSL), SSR Mining (TSX: SSRM), Trilogy Metals (TSX: TMQ), Wesdome Gold Mines (TSX: WDO), Wheaton Precious Metals (TSX: WPM) and Yamana Gold (TSX: YRI).
