Most recently, Equinox Minerals Limited (TSX:EQN) listed on TSX on Wednesday, June 30, concurrently raising $15.6 million. Equinox Resources Ltd., an Australian company listed on ASX, made the move to Canada to take it to the next step which is the development of its Lumwana copper and cobalt deposit in Zambia.
Equinox is not the only foreign-listed mining company that has been attracted to list on TSX this year. Anvil Mining NL, also from Australia, reincorporated into Canada to list. Anvil Mining Limited (TSX:AVM) operates the high grade Dikulushi copper-silver mine in the Democratic Republic of the Congo and is in the process of expanding production to 20,000 tonnes of copper and 1.8 million ounces of silver per year in concentrates.
Another significant addition to TSX this year is gold producer Kenor ASA, which changed its name to Guinor Gold Corporation (TSX:GNR), when it reincorporated into Canada from Norway. Guinor operates the Lero gold mines in Guinea (West Africa) and produced about 90,000 ounces of gold in 2003. The company raised $34.3 million concurrent with its listing and currently has a market capitalization of $137 million.
“Toronto Stock Exchange remains the world’s leading market for raising equity capital for mining and as a result attracts numerous foreign mining participants,” said Robert Fabes, Senior Vice President, TSX. “The addition of companies such as Equinox Minerals Ltd., Anvil Mining Ltd. and Guinor Gold Corporation certainly speaks to the advantages our Canadian markets offer international mining companies.”
Toronto Stock Exchange has seen a total of 19 new mining listings in the first half of 2004, a 533% increase over the first half of 2003. In aggregate, these new listings bring an additional $2.3 billion to the value of mining securities listed on TSX. This adds to the rather substantial TSX mining sector that is home to 210 listed mining companies with a quoted market value of over $139 billion. Eight of the new mining listings have market capitalizations of over $100 million.
According to Mr. Fabes, part of the reason for this recent increase in listings may be because of stepped up international marketing efforts in support of the corporate strategy to showcase TSX’s pre-eminent position as the world’s leading mining exchange. “TSX has worked hard in getting its mining story out to the world, making regular business development trips to South Africa, Chile, Peru, the U.S., Australia and recently to China, to communicate our leading position among the world’s exchanges when it comes to mining and to profile the benefits offered to companies in many other business sectors as well.” He added, “New listings attract new capital both from Canada and abroad, which adds to the overall momentum and depth of our Canadian capital markets, making them more globally significant.”
Sustained gold prices have also contributed to the increased activity. Gold, hovering around the US$400 mark, has supported the launch of the largest mining IPO on TSX in 7 years. Cameco’s spin-off of Centerra Gold Inc. (TSX:CG) on June 30th has produced a newly listed mid-tier gold producer, with expected gold production for 2004 of over 850,000 ounces. After raising about $253 million during its IPO, Centerra boasts a market capitalization on its first day of trading of around $1 billion.
Although base metal prices have fallen back since earlier this year they are still at respectable levels compared with a couple of years ago. As a result, TSX has seen some significant activity among the base metal companies. For example, Quadra Mining Ltd. (TSX:QUA) completed a $145 million IPO in April and Euro Zinc Corporation (TSX-V:EZM) raised over $78 million in April and is scheduled to graduate from the TSX Venture Exchange next week.
