A Capital Opportunity. A Global Market for Mining Companies

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1 A Capital Opportunity A Global Market for Mining Companies

2 Disclaimer This document is for information purposes only. While the information herein is collected and compiled with care, neither TMX Group Limited nor any of its affiliated companies represents, warrants or guarantees the accuracy or the completeness of the information. You agree not to rely on the information contained herein for any trading, legal, accounting, tax, investment, business, financial or other purpose. This information is provided with the express condition, to which by making use thereof you expressly consent, that no liability shall be incurred by TMX Group Limited and/or any of its affiliates as a result of any errors or omissions herein or any use or reliance upon this information TSX Inc. All rights reserved. Do not sell or modify without the prior written consent of TSX Inc. 2

3 Canada and TSX: Strong Fundamentals Economically stable Ranked the best country in the G7 for doing business ( ) Lowest debt-to-gdp among G7 Strong equity culture 160+ year history of serving the Canadian markets ~$2.8 trillion in market cap $278 billion in equity capital raised in last 5 years A dynamic marketplace Robust marketplace Access to capital History of innovation Committed to growth Source: Rankings from The Economist Intelligence Unit, via Invest in Canada Think Canada, January As at December 31,

4 Overview: Canada s Equity Market TSX and TSX Venture Exchange World Ranking Country Ranking: Equity Capital Raised (2016) #2 Number of IPOs and New Listings (2016) Rank Country Stock Exchanges 1 China 2 USA NYSE, NASDAQ Hong Kong Exchanges, Shanghai SE, Shenzhen SE #1 Number of International IPOs and New Listings (2016) 3 Canada TSX / TSX Venture Exchange 4 United Kingdom London Stock Exchange 5 Australia Australian Securities Exchange 37% more equity capital raised on TSX/TSXV than on LSE/AIM Source: TSX/TSXV Market Intelligence Group, World Federation of Exchanges; as at December 31, Country ranking reflects the total equity capital raised by companies listed on the stock exchanges based in each country and does not include exchanges groups that encompass multiple countries. 4

5 Leadership in the Mining Sector #1 in listed Mining companies #1 in Mining equity capital raised TSX and TSXV list the most Mining companies in the world Value of Mining Equity Capital Raised 5-Year (2012 to 2016) Total = $92 billion 1206 Other 17% TSX/TSXV ASX LSE/AIM HKEx 3% LSE/AIM 8% TSX/TSXV 46% NYSE/MKT 10% ASX 16% Source: TSX/TSXV Market Intelligence Group and S&P Capital IQ. YTD December 31,

6 Access to Capital TSX Mining IPOs in % of the number of mining equity financings globally in 2016 Nexa Resources S.A. (TSX: NEXA) $732 million IPO Mining in Brazil and Peru Ero Copper Corp. (TSX: ERO) $127 million IPO Mining in Brazil +38% more equity capital raised by the TSX/TSXV Mining sector in 2016 over 2015 Titan Mining Corporation (TSX: TI) $50 million IPO Mining in New York Source: S&P Capital IQ and TSX/TSXV Market Intelligence Group, as at December 31, 2016, unless otherwise noted. 6

7 Strong Liquidity for Mining Issuers $449 $450 $450 $433 $439 $342 $310 $354 $394 $373 AIM Value Traded TSXV Value Traded ASX Value Traded TSX Value Traded $273 $256 $210 $204 $204 $173 $149 $146 $141 $87 $33 $28 $22 $26 $15 $13 $10 $11 $12 $14 $11 $10 $5 $5 $4 $4 $3 $2 $2 $ Source: Exchange websites, S&P Capital IQ. Amounts in C$ billions. 7

8 The Emerging Exchange for Mining Companies in Latin America 267 Number of TSX/TSXV Mining Companies in Latin America $3.5B Equity Capital Raised YTD October 2017 on TSX/TSXV by Companies with Mining Projects in Latin America Mexico 106 Ecuador 6 Venezuela Colombia 1 23 Peru 48 Chile 32 Bolivia 5 Argentina 36 Suriname Guyana 9 Brazil 30 Paraguay 1 Uruguay 2 3 French Guiana Number of Latin American Mining Properties 12 New Mining Listings with Projects in Latin America Source: TSX/TSXV Market Intelligence Group and S&P Global Market Intelligence. As at October 31, New listings exclude movement between TSX and TSX Venture Exchange. 8

9 TSX and TSXV Companies are Mining in Mexico 106 Number of TSX/TSXV Mining Companies in Mexico Mexico Number of Mexican Mining Properties $1.3B Equity Capital Raised YTD October 2017 on TSX/TSXV by Companies with Mining Projects in Mexico 2 New Mining Listings with Projects in Mexico, YTD October 2017 Source: TSX/TSXV Market Intelligence Group and S&P Global Market Intelligence. As at October 31, New listings exclude movement between TSX and TSX Venture Exchange. 9

10 TSX and TSXV Companies are Mining in Brazil 30 Number of TSX/TSXV Mining Companies in Brazil 74 Number of Brazilian Mining Properties $934M Equity Capital Raised YTD October 2017 on TSX/TSXV by Companies with Mining Projects in Brazil Brazil 30 4 New Mining Listings with Projects in Brazil, YTD October 2017 Source: TSX/TSXV Market Intelligence Group and S&P Global Market Intelligence. As at October 31, New listings exclude movement between TSX and TSX Venture Exchange. 10

11 TSX and TSXV Companies are Mining in Colombia 23 Number of TSX/TSXV Mining Companies in Colombia Colombia Number of Colombian Mining Properties $281M 3 Equity Capital Raised YTD October 2017 on TSX/TSXV by Companies with Mining Projects in Colombia Average Number of Analysts Covering TSX/TSXV Companies with Projects in Colombia 11 Source: TSX/TSXV Market Intelligence Group and S&P Global Market Intelligence. As at October 31, 2017.

12 TSX and TSXV Companies are Mining in Chile 32 Number of TSX/TSXV Mining Companies in Chile 83 Number of Chilean Mining Properties $155M Equity Capital Raised YTD October 2017 on TSX/TSXV by Companies with Mining Projects in Chile 5 Chile 32 Average Number of Analysts Covering TSX/TSXV Companies with Projects in Chile Source: TSX/TSXV Market Intelligence Group and S&P Global Market Intelligence. As at October 31,

13 TSX and TSXV Companies are Mining in Argentina 36 Number of TSX/TSXV Mining Companies in Argentina 85 Number of Mining Properties in Argentina $235M Equity Capital Raised YTD October 2017 on TSX/TSXV by Companies with Mining Projects in Argentina Argentina 36 5 Average Number of Analysts Covering TSX/TSXV Companies with Projects in Argentina Source: TSX/TSXV Market Intelligence Group and S&P Global Market Intelligence. As at October 31,

14 TSX and TSXV Companies are Mining in Peru 48 Number of TSX/TSXV Mining Companies in Peru 88 Number of Peruvian Mining Properties $1.5B Equity Capital Raised YTD October 2017 on TSX/TSXV by Companies with Mining Projects in Peru Peru 48 4 Average Number of Analysts Covering TSX/TSXV Companies with Projects in Peru Source: TSX/TSXV Market Intelligence Group and S&P Global Market Intelligence. As at October 31,

15 Technology Metals on TSX and TSXV in Latin America $2.6B total market cap on TSX and TSXV Average market cap, TSX - $498M Average market cap, TSXV - $71M Mexico 2 Cuba 1 18 TSX and TSXV mining companies with lithium or cobalt projects in Latin America 3 on TSX, 15 on TSXV $130M equity capital raised YTD October 2017 $129 million raised for lithium projects $0.7 million raised for cobalt projects Peru 2 Chile 4 Argentina 14 Brazil 1 6 average number of analysts covering TSX lithium and cobalt issuers in Latin America 200+ analysts cover the TSX/TSXV mining sector Source: TSX/TSXV Market Intelligence Group and S&P Global Market Intelligence. As at October 31, Includes TSX and TSXV mining issuers with lithium or cobalt mines in Latin America. Map indicates the number of properties. 15

16 Dean McPherson Head, Business Development, Global Mining Toronto Stock Exchange TSX Venture Exchange

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