TSX, TSX-V mining listings rebound

23rd April 2010 By: Matthew Hill

TORONTO (miningweekly.com - There were 43 new mining listings on the TSX and the Venture exchange in the first quarter of 2010, and global mining senior manager Greg Ferron told Mining Weekly Online this week the bourse would easily beat last year’s listings count.

In 2009, 105 miners listed in Toronto, so if the TSX is able to continue with the momentum of the first quarter, it could almost match this in the first half of 2010.

And Ferron is upbeat about the rest of the year: “We are quite optimistic. There’s been a lot of activity and I don’t see any reason why that’s going to change.”

He points out that there had been a significant increase in the amount of international mining companies listing on the TSX. “That’s what we’ve been working on for the past few years. We are seeing a lot of listings from Australia and dual listings from Aim (London’s alternative investment market).”

In the first three months of 2009, only 17 mining companies went public in Toronto.

Of the 43 listings in the first quarter of 2010, 34 were on the TSX Venture exchange, for smaller companies, and nine were on the main board.

Mining companies on the TSX raised a total of C$3-billion in the same period. Last year, over C$22-billion was raised for mining on the TSX.

Global markets have rebounded strongly since the collapse that started in 2008. Over the past 12 months, the TSX composite index has climbed by 30%, while the S&P/TSX global mining index has surged by 40%.

Mining is the biggest sector by market cap on the TSX, with oil and gas at number two.

Increases in commodity prices has also once again sparked investor interest in the mining sector.

Among the TSX’s new mining listings in the first quarter were Rio Novo Gold, a Brazil-based miner, Fortuna Silver Mines, from Peru, and the Australian TriAusMin.

According to Ferron, the TSX was home to 55% of the world’s listed mining companies.