“TMX Group sees Peru as a leading country in Latin America in terms of mining. Peru has great governance and transparency, which continues to improve and is bringing more confidence to investors. We will continue to support the advancement of the mining industry in Latin America and Peru in particular.”
Can you give a brief overview of TMX Group and its role in the mining industry’s financing?
Toronto Stock Exchange (TSX) is the fourth largest marketplace globally, but we are the largest and most dominant stock market for mining companies in the world. Approximately 49% of mining financings in 2018 were done on TSX, and over CAD$40 billion of mining funds have been raised on our markets in the last five years. 2018 was a very prosperous year for us and we raised CAD$6.5 billion. As of the end of 2018, we had close to 1,200 mining companies listed on both TSX and TSX Venture Exchange (TSXV), and 50% of the mining companies that are publicly listed globally are on our exchanges. Our nearest competitor in this sector only has approximately 600 mining companies listed and raised close to CAD$5 billion in 2018.
Considering the trend towards globalization, how important is Latin America for TMX Group?
Latin America is a very important region for TMX Group as it hosts the second largest concentration of our issuers’ mining properties, after Canada. Mexico is ahead in terms of how much mining is represented on our marketplace; however, we definitely see significant opportunities for growth in this respect from the rest of Latin America. Our commitment and the importance of Latin America is demonstrated by our recent establishment of an on-the-ground presence in Lima (Peru), led by Guillaume Légaré, head of South America for TSX and TSXV. Having a presence in Latin America provides us with the constant contact and development with the major players in the region. We see this as an important advantage. This model has worked very well for us in other regions across the globe, and we feel that there are now significant opportunities for us in Latin America, as the region’s appetite for investment has increased significantly over the past few years.
What efforts does TMX Group put in so as to keep the market competitive in terms of costs for the companies?
We consider ourselves to be an entrepreneurial exchange. We have four different paths to listing, which are customizable to each company, depending on its circumstances. Investors and our issuers depend on us to maintain integrity, but we are still flexible to tailor listing solutions for companies. For example, our Capital Pool Company program has been very successful in helping companies access the market in a timely fashion, as well as assisting companies that may not have the capital to pay for the initial listing. Once companies are listed, we also offer coaching and mentoring services. To date, we have had over 650 companies graduate from the Venture Exchange to the senior exchange.
What is the importance of the dual listing agreements and how is TMX Group working to spread the National Instrument 43-101 standard across the Latin American region?
It is very important for us to encourage and ensure that companies in the Latin American region comply with the National Instrument (NI) 43-101 standard. We do not want to jeopardize the integrity of our market in any way, and we believe that NI 43-101 is at the center of our markets’ integrity, as it allows companies to represent opportunities to investors in a consistent, fair, clear and standardized matter. This, in turn, provides for more consistent and often better valuations for mining companies – a win for both sides of the table. We see significant opportunities for dual listings in the region to give employees and other local stakeholders an opportunity to participate in long term wealth creation and financial benefits, by owning and trading (in local currencies) in the stocks of mining companies operating in their communities.
Do you have a final message for our international readership about Peru as a mining country?
TMX Group sees Peru as a leading country in Latin America in terms of mining. Peru has great governance and transparency, which continues to improve and is bringing more confidence to investors. The country has recognized the importance of mining for economic growth. Other nations in Latin America can benefit from looking at Peru as an example. We are committed to promoting the entire Latin American region and will continue to support the advancement of the mining industry in Latin America and Peru in particular.