In an exclusive preview of the 2019 edition, Mexico Mining Review Rob Peterman, Vice President of Global Business Development at Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) talks about how the exchange facilitates mining activity in Mexico.
Q: What trends has 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 a dual or additional listing 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 – the relationship is a very significant one. We have prioritized connecting our companies to key government mining institutions and are in contact with leaders such as Mario Alfonso Cantú, the Undersecretary of Mining in Mexico. We had a chance to participate in a panel with the Undersecretary at the Mexico Mining Day conferences during PDAC and we discussed the strengths and areas of opportunities within the Mexican mining industry. 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 does TSX support junior mining companies in the process of graduating from TSX Venture Exchange to TSX?
A: The decision to graduate is made at a corporate level. The main benefits of transitioning from TSXV to TSX is the access to certain larger institutions, pension plans as well as gaining access to index and composites like the S&P/TSX Composite. But some companies may decide to stay on TSXV as it has some regulatory nuances that they like, such as an extra month to do their financial reporting. Our role is to help explain the differences between the two markets and to support the graduation process where it makes sense for the evolution of the business and the shareholder base.
This is an exclusive preview of the 2019 edition of Mexico Mining Review. If you want to get all the information, plus other relevant insights regarding this industry, pre-order your copy Mexico Mining Review or access our digital copy of the 2018 edition.