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Global Mining Finance LONDON NOVEMBER 5TH 2013
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2 © 2013 TSX Inc. All rights reserved. Do not sell or modify without the prior written consent of TSX Inc.
Canada and TSX: Strong Fundamentals
3 * World Economic Forum, September 2012, five years in a row
Economically stable Canada is the fourth largest equity
market by float capitalization in the MSCI World Index
World’s soundest banking system* Lowest debt-to-GDP among G7 Strong equity culture The global exchange leader
for new listings in 2012, 2011, 2010 and 2009
~$2.2 Trillion in market cap
Resource rich World’s largest producer of
zinc and uranium and major producer of gold, nickel, aluminum and lead
The World Trades on TSX
~40% of daily trading originates from international brokers
4
Toronto Stock Exchange Volume & Transactions (2004-2012)
Diverse Issuer Base
5 * As at June 30, 2013 includes issuers on Toronto Stock Exchange and TSX Venture Exchange (100% = 3769)
Number of Issuers by Sector
Mining 1655
Oil & Gas & Energy Services 462
Diversified Industrials 297
Structured Products 219
Life Sciences 108
ETFs 291
Financial Services 118
CPC 139
Clean Technology 114
Real Estate 98
Technology 170
Utilities & Pipelines 28
Comm & Media 46
Forest Products 24
Service at All Stages of Growth
Serving all Market Caps A Unique Market Structure with Strong Feeder System
569 graduates +136 M&A*
* Market Capitalization, June 30, 2013 *From January 1, 2000 – June 30, 2013 6
247 mining
graduates 576 Issuers
2,089 Issuers
449 Issuers 110
534 Issuers 11
The Mining Sector
8
Exploration 1191
Advanced Exploration 891
Production 201
Development 121
Mining Companies by Stage of Project
Source: Infomine as at September 5 2013
Mining: First Half Global Financing Activity
9
49% of all global mining equity financings
are done by TSX and TSXV listed issuers
32% of the equity capital raised
globally for mining Source: Gamah International, 2013 YTD June, compiled by Toronto Stock Exchange
Global Mining Equity Financing Trend 2013 H1 (C$ Billions)
2.2
2.0 1.9
0.50.4
0.0
TSX/TSXV NYSE/NYSEMKT
ASX LSE/AIM HKSE Other
702 2 655 64 1 5
10
Breakdown of TSX and TSXV Mining Projects by Location
Breakdown of TSX and TSXV Mining Issuers by Primary Metals
Source: Infomine, TSX/TSXV Market Intelligence Group
Mining Finance: A Changing Landscape
1. Resource Nationalism 2. Engagement of Local Communities 3. Missed Expectations 4. Regulatory Environment
12
TSX and TSXV: Mining Financing
-‐
50
100
150
200
250
300
350
400
450
-‐ 200 400 600 800
1,000 1,200 1,400 1,600 1,800 2,000 2,200 2,400 2,600 2,800 3,000 3,200 3,400 3,600 3,800 4,000 4,200 4,400 4,600 4,800 5,000 5,200 5,400 5,600 5,800 6,000 6,200 6,400 6,600 6,800 7,000
Jan-‐08
Mar-‐08
May-‐08
Jul-‐0
8 Sep-‐08
Nov-‐08
Jan-‐09
Mar-‐09
May-‐09
Jul-‐0
9 Sep-‐09
Nov-‐09
Jan-‐10
Mar-‐10
May-‐10
Jul-‐1
0 Sep-‐10
Nov-‐10
Jan-‐11
Mar-‐11
May-‐11
Jul-‐1
1 Sep-‐11
Nov-‐11
Jan-‐12
Mar-‐12
May-‐12
Jul-‐1
2 Sep-‐12
Nov-‐12
Jan-‐13
Mar-‐13
May-‐13
Jul-‐1
3
Amount of Mining Equity Capital Raised ($M) Number of Financings
Mining: Equity Capital Raised on TSX/TSXV
13
$2.2 Billion raised by TSX and TSXV listed issuers in the first half of 2013
Africa: $373M
Australia: $99M
USA: $297M
Latin America: $597M
Equity capital raised on TSX and TSXV for mining companies by location of project Source: TSX/TSXV Market Intelligence Group, YTD June 2013
UK/Europe: $110M
14 YTD July 31 2013 by Project Location
2013 Mining New Listings TSX Venture Exchange
Bullman Minerals Inc., Gold in Guinea East Africa Metals Inc., Gold in Tanzania Orca Gold Inc., Gold in Sudan Pangolin Diamonds Corp., Diamonds in Botswana
Delta Gold Corp., Gold in Australia, Czech Republic and California
Chinapintza Mining Corp., Gold in Ecuador Equitorial Exploration Corp., Gold and Copper in Colombia Fission Uranium Corp., Uranium in Peru and Saskatchewan Galway Gold Inc., Gold in Colombia Kairos Capital Corporation, Mineral Exploration in Chile Lowell Copper Ltd., Copper in Chile, Ecuador and BC Trident Gold Corp., Gold in Colombia
Aurania Resources Ltd., Gold, Copper and Uranium in Switzerland Emerita Gold Corp., Gold in Spain
Castle Mountain Mining Company, Gold in California Galway Metals Inc., Molybdenum and Tungsten in New Mexico Natan Resources Ltd., Iron in Arizona Oakmont Minerals Corp., Manganese in Utah Viscount Mining Corp., Gold, Silver in Nevada Wolfpack Gold Corp., Gold, Silver and Uranium in New Mexico and Nevada
Canada: 25 Companies with projects in Canada Exploring for Gold, Silver, Copper, Nickel, Diamonds, Iron, Zinc, Uranium, Coal, Tungsten, Fluorite, Graphite, Beryllium, Titanium, Vanadium, Indium
Alternative Financing Tools
1. Royalties/Streaming 2. Joint Ventures 3. Private Equity
Toronto Stock Exchange
16 YTD August 31 2013
Company HQ Location
Gross Proceeds
Type of Financing Commodity Sought Property Location
Platinum Group Metals Ltd. South Africa $180.0M Secondary Offering Platinum, Palladium South Africa, NWT, ON
Detour Gold Corporation ON $176.1M Secondary Offering Gold Ontario
Allied Nevada Gold Corp. USA (NV) $154.3 M Secondary Offering Gold USA (NV)
Guyana Goldfields Inc. ON $100.0M Secondary Offering Gold Brazil,French Guiana,Guyana, Suriname,Venezuela
Paladin Energy Ltd. Australia $81.6M Private Placement Uranium Malawi, Namibia, Niger, Australia, Newfoundland
Kirkland Lake Gold Inc. ON $69.0M Secondary Offering Gold Ontario
Banro Corporation ON $67.8M Secondary Offering Gold DRC (Congo)
Polymet Mining Corp. USA (MN) $62.5M Secondary Offering Gold, Copper, Nickel, Platinum, Palladium, Cobalt USA (MN)
MBAC Fertilizer Corp. Brazil $51.7M Private Placement Potash, Phosphate Brazil
San Gold Corporation MB $50.0M Secondary Offering Gold Manitoba
2013 Largest Mining Financings: TSX
TSX Venture Exchange
17 YTD August 31 2013
Company HQ Location
Gross Proceeds
Type of Financing Commodity Sought
Property Location
Santacruz Silver Mining Ltd. Mexico $40.4M Shares for Debt Silver Mexico
Corsa Coal Corp. BC $31.0M Private Placement Coal USA (MD, PA)
Dunav Resources Ltd. Quebec $16.8 M Private Placement Gold, Copper, Molybdenum Serbia
Maudore Minerals Ltd. Quebec $15.5M Private Placement Gold Quebec
Aldridge Minerals Inc. BC $15.0M Private Placement Gold, Silver, Copper, Lead, Zinc Turkey
Panoro Minerals Ltd. BC $15.0M Public Offering Gold, Copper, Molybdenum Peru
Monument Mining Limited BC $15.0M Private Placement Gold Malaysia
Probe Mines Limited ON $15.0M Private Placement Gold Ontario, Quebec
EastCoal Inc. BC $13.1M Private Placement Coal Ukraine
ATAC Resources Ltd. BC $13.0M Private Placement Gold Yukon
2013 Largest Mining Financings: TSXV
Toronto Stock Exchange
18 YTD August 31 2013
Ticker HQ Location Listing Method
Dual Listed On
Commodity Sought
Property Location
GoGold Resources Inc. GGD Nova Scotia Canada TSXV Grad - Gold and Silver Mexico
Loncor Resources Inc. LN Ontario Canada TSXV Grad NYSE MKT Gold DRC Africa
Midway Gold Corp. MDW Colorado USA TSXV Grad NYSE MKT Gold Nevada Washington
Sierra Metals Inc. SMT BC Canada TSXV Grad Lima (BVL)
Gold, Silver, Copper, Lead,
Zinc Mexico and Peru
Balmoral Resources Ltd. BAR BC Canada TSXV Grad - Gold Quebec
2013 Mining New Listings Toronto Stock Exchange
19
Monthly Volume Traded: TSX and TSXV Mining
-‐
2.0
4.0
6.0
8.0
10.0
12.0
Oct-‐08
Nov-‐08
Dec-‐08
Jan-‐09
Feb-‐09
Mar-‐09
Apr-‐09
May-‐09
Jun-‐09
Jul-‐0
9 Au
g-‐09
Sep-‐09
Oct-‐09
Nov-‐09
Dec-‐09
Jan-‐10
Feb-‐10
Mar-‐10
Apr-‐10
May-‐10
Jun-‐10
Jul-‐1
0 Au
g-‐10
Sep-‐10
Oct-‐10
Nov-‐10
Dec-‐10
Jan-‐11
Feb-‐11
Mar-‐11
Apr-‐11
May-‐11
Jun-‐11
Jul-‐1
1 Au
g-‐11
Sep-‐11
Oct-‐11
Nov-‐11
Dec-‐11
Jan-‐12
Feb-‐12
Mar-‐12
Apr-‐12
May-‐12
Jun-‐12
Jul-‐1
2 Au
g-‐12
Sep-‐12
Oct-‐12
Nov-‐12
Dec-‐12
Jan-‐13
Feb-‐13
Mar-‐13
Apr-‐13
May-‐13
Jun-‐13
Jul-‐1
3
Volume Traded (Billions of Shares)
20
Quarterly Mining New Listings
17
12
7 6 4
0 2
12
0
23
12
24
10
17
12 10 10
7
2
9
1 1
27
23
29
17
13
19 21
33 34 33
38
44
32
43 43
34 36
26 23 24
18 20
0
5
10
15
20
25
30
35
40
45
50
TSX TSXV
21
Mining Delistings
TSX TSXV
25 34
26 17
23 16
2
3
3
7 3
6
2
10
13
6 3
0
0
5
10
15
20
25
30
35
40
45
50
2008 2009 2010 2011 2012 2013 YTD August 31
Failure to Meet Continued Listing Requirements
At the request of the company
Following M&A
17 20 19 20 21
7
4
12 6 6
8
8
5
10
8 1
5
6
0
5
10
15
20
25
30
35
40
45
2008 2009 2010 2011 2012 2013 YTD August 31
Failure to Meet Continued Listing Requirements
At the request of the company
Following M&A
The Mining Sector Orlee Wertheim. Head of Global Mining Business Development +1 416 947 4477 [email protected] Graham Dallas. Head of Business Development EMEA +44 203 194 2580 [email protected]
