Mining firms set to lead capital raisings in Canada this year, says TSX CEO

Mining companies listed on the Toronto Stock Exchange (TSX) look set to lead capital raisings in Canada this year, with increasing demand for critical minerals bolstering the sector to new heights, according to TSX CEO Loui Anastasopoulos.

TSX data shows that listed mining companies in Canada have raised C$3.1 billion so far this year, accounting for 25% of the total capital raised on the TSX and the TSX Venture Exchange (TSXV), compared to 18% in the same period last year, while overall raising of funds has dropped by about 54%.

Last year, technology companies led the way among equity sectors with C$13.8 billion in funds raised, followed by mining at C$10 billion and financial services at C$6.9 billion.

“I do think we are going to see a bit of a renaissance in mining that we haven’t seen in years, just given what’s happening with global demand, supply,” Anastasopoulos told Reuters.

Critical minerals in particular are becoming a key focus area for miners, based on rapidly growing demand for the raw materials needed to achieve the clean energy transition. The development of Canada’s vast deposits of critical minerals – including cobalt, lithium, nickel and copper – will be required to provide diversity of supply, as China currently holds about 50% of global critical minerals supply.

The sector’s biggest players have been injecting capital into the junior space in 2022, a trend that TSX analysts hope to see continue throughout the remainder of the year. Rio Tinto agreed to pay C$10 million for a 10% stake in British Columbia-based Nano One Materials Corp in June, while BHP bought a C$100 million stake in Vancouver-based copper-gold explorer Filo Mining back in February.