With 35 Australian companies listed on TSX and TSXV, Canada has proven to be an attractive access point to North American capital, particularly for Australian resource companies with properties in the Americas.
“It’s all about access to capital and access to liquidity,” says Kevan Cowan, President, TSX Markets and Group Head of Equities, TMX Group.
Earlier this year, Cowan visited Australia with a contingent from Toronto’s investment community. “With the largest pool of capital and the largest pool of liquidity for international mining companies, TSX is an obvious one to consider,” he says.
For companies in Australia and throughout the world, Canada has become a destination for trading and investment. Currently, about 40% of daily trading on TSX arises from international order flows.
Australian listings on TSX and TSXV have almost tripled in the last five years, and there are now 33 resource companies with a dual listing on the Australian Securities Exchange (ASX), such as Newcrest Mining (TSX:NM), Paladin Energy (TSX:PDN), Mirabela Nickel (TSX:MNB) and Aurora Oil & Gas (TSX:AEF). Last year, Australian companies raised $615 million on TSX and TSXV. Since 2010, they have raised more than $3 billion on the Exchanges.
Statistics show that companies with dual listings also generate more trading in their home market. Average daily volume of trading on ASX in Mirabela Nickel, for example, has risen by 959% and in Intrepid Mines by 417%, since they dual listed on TSX.
“As a financial centre for global mining companies, Toronto offers substantial expertise and knowledge.” – Collin Ellison, Managing Director & CEO of PMI Gold
In addition, many Australian issuers operate projects outside of the Asia-Pacic region, including Mirabela Nickel in Brazil, Aurora in Texas and PMI Gold Corporation (TSX:PMV) in Ghana.
Australian issuers are particularly attracted by the two-tier system of TSX and TSXV. Australian companies that have graduated from TSXV to TSX include PMI Gold, Besra Gold (TSX:BEZ), Nautilus Minerals Inc. (TSX:NUS) and Endeavour Mining Corporation (TSX:EDV). PMI Gold, for example, raised more than $200 million on TSXV before graduating to TSX.
“As a financial centre for global mining companies, Toronto offers substantial expertise and knowledge,” says Collin Ellison, Managing Director & CEO of PMI Gold. “This allows things to get done on a tighter time schedule and provides a number of financing options for a broad range of company sizes, from junior exploration to developers to the major operators.”