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- ASX and the mining industry have a long and rich history of working together. ASX owes its existence to Australia’s mining heritage.
- The market capitalisation of domestic companies in the Resources sector (which includes mining, metals and energy companies) at the end of last financial year was around $193 billion – 19% of total market cap and included 528 listed companies in total (nearly one-third of all listed domestic companies). Of these, 426 were classed as junior miners or explorers.
- ASX has been talking to small and medium-size enterprise participants – around one-third of whom are mining entities - seeking to understand their concerns, with the objective of ensuring that Australian mining companies look first to Australia as their primary listing and source for raising capital.
- Proposals are being developed in consultation with the industry of potential benefit to the
mining sector (and the broader SME sector). These include:
- Adjusting key capital raising settings in the listing rules with a view to reducing the cost of raising capital;
- Considering if Corporate Governance guidelines can be implemented in a way that reduces compliance costs;
- Seeing if ASX can assist to improve liquidity in junior mining stocks via investor communications and equity research;
- Working with industry to examine the flow-through share scheme; and
- Working to ensure appropriate index support for the sector.
- ASX will progress these initiatives with the industry over the next 6 to 9 months.
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