Toronto Stock Exchange has become a hotspot for mining companies seeking to raise capital, with a significant dominance in the market. As of August 31, 2024, mining companies constituted a substantial portion of the capital raised, making up 70% of company issuers and over 50% of the total equity of C$15 billion ($16.17 billion) raised during that period.

The Toronto Stock Exchange (TSX) and TSX-V saw a total of 156 new listings, with 39 of them belonging to mining companies. Exchange-traded funds (ETFs) also made a strong presence, accounting for 89 of the overall listings, alongside eight Special Purpose Acquisition Corporations (SPAC) and Capital Pool Companies (CPC).

The rise in popularity of ETFs, which typically track stock indices or sectors, has been notable in recent years. These funds offer investors exposure to a diverse portfolio of assets traded on the stock market, mirroring the performance of specific indexes or assets.

In September 2024, TSX experienced 13 new issuers, a slight decline from the previous months. This included a mix of ETFs and a utilities and pipelines company. However, the total financings witnessed a significant drop of 64% compared to the previous month and a staggering 90% decrease from September 2023.

The average financing size on TSX is reported to be C$42 million, while on TSX-V, a much smaller exchange, it stands at C$3.3 million. The TSX, founded in 1861, has evolved over the years to become a prominent national exchange for senior equities by the late 1990s.

TMX Group, headquartered in Toronto, oversees operations that include cash and derivative markets, as well as clearinghouses for equities, fixed income, and energy. The group’s subsidiaries cater to the global financial community, offering a range of services and data products.

Looking at the international landscape, as of December 31, 2023, 244 international companies were listed on TSX and TSX-V, with a significant portion originating from the US, Australia, New Zealand, and Papua New Guinea. Notably, over a five-year period, TSX/TSX-V accounted for a substantial share of global mining equity capital raised.

TSX-V, the smaller counterpart, saw five new issuers in September 2024, maintaining a consistent trend from the previous month. These new listings included mining, technology, and oil and gas companies. Total financings on TSX-V increased by 113% compared to September 2023, showcasing a positive trend in capital raising activities.

The mining sector’s strong presence on the Toronto Stock Exchange underscores its importance as a hub for capital raising within the industry. As mining companies continue to leverage the resources and opportunities provided by the exchange, the Toronto market remains a key player in facilitating financial growth and investment in the sector.