Loading ...Bonfire of the juniors avoided as role of alternative finance gathers pace
TORONTO (miningweekly.com) – The number of companies that have delisted from the TSX and the TSX-V is far fewer than many commentators predicted, while the level of financing activity by mining companies on both exchanges has also increased, attendees at the mineLatinAmerica convention, in Toronto, were told.
Alternative fiscal models had also helped many companies weather the downturn, although success had frequently depended on a company having the right investment profile: either being in production or holding advanced-stage projects.
GETTING BETTER
In a market still looking for signs of improvement, the increase in the number of financings on both the TSX and TSX-V compared with 2013 had been a positive development, TSX-V venture exchange director for listed services Tim Babcock said. This included companies in the mining sector and reversed the downward trend witnessed over the past few years, he added. “So 2013 was, hopefully, the bottom.”
Issuers in the mining sector had raised $6.7-billion year-to-date in the third quarter, Babcock highlighted, although he noted that this included an early first-quarter raise of around $2.4-billion by Turquoise Hill Resources, the operator of the Oyu Tolgoi copper/gold mine, in Mongolia. “But even if we factor that out, we’re still up in aggregate terms by about 50% compared with 2013 in terms of dollars raised,” he noted.