Current Mining Markets: Myths and Realities MINEAFRICA. LONDON DECEMBER 2ND 2013

Transcription

1 Current Mining Markets: Myths and Realities MINEAFRICA. LONDON DECEMBER 2ND 2013

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 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 * World Economic Forum, September 2012, five years in a row 3

4 The World Trades on TSX ~40% of daily trading originates from international brokers Toronto Stock Exchange Volume & Transactions ( ) 4

5 Diverse Issuer Base Number of Issuers by Sector Structured Products 219 CPC 139 Financial Services 118 Real Estate 98 Utilities & Pipelines 28 Mining 1655 Oil & Gas & Energy Services 462 Diversified Industrials 297 Technology 170 Forest Products 24 ETFs 291 Clean Technology 114 Life Sciences 108 Comm & Media 46 * As at June 30, 2013 includes issuers on Toronto Stock Exchange and TSX Venture Exchange (100% = 3769) 5

6 Service at All Stages of Growth Serving all Market Caps A Unique Market Structure with Strong Feeder System 576 Issuers 2,089 Issuers 449 Issuers Issuers graduates +136 M&A* 247 mining graduates * Market Capitalization, June 30, 2013 *From January 1, 2000 June 30,

7 The Mining Sector

8 Mining Companies by Stage of Project Exploration 1191 Advanced Exploration 891 Production 201 Development 121 Source: Infomine as at September

9 Mining: First Half Global Financing Activity 49% of all global mining equity financings are done by TSX and TSXV listed issuers Global Mining Equity Financing Trend 2013 H1 (C$ Billions) % of the equity capital raised globally for mining TSX/TSXV NYSE/NYSE MKT Source: Gamah International, 2013 YTD June, compiled by Toronto Stock Exchange 0.0 ASX LSE/AIM HKSE Other

10 Diverse Issuer Base Breakdown of TSX and TSXV Mining Issuers by Primary Metals Breakdown of TSX and TSXV Mining Projects by Location Source: Infomine, TSX/TSXV Market Intelligence Group 10

11 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 7,000 6,800 6,600 6,400 6,200 6,000 5,800 5,600 5,400 5,200 5,000 4,800 4,600 4,400 4,200 4,000 3,800 3,600 3,400 3,200 3,000 2,800 2,600 2,400 2,200 2,000 1,800 1,600 1,400 1,200 1, Jan- 08 Mar- 08 May- 08 Jul- 08 Sep- 08 Nov- 08 Jan- 09 Mar- 09 May- 09 Jul- 09 Sep- 09 Nov- 09 Jan- 10 Mar- 10 May- 10 Jul- 10 Sep- 10 Nov- 10 Jan- 11 Mar- 11 May- 11 Jul- 11 Sep- 11 Nov- 11 Jan- 12 Mar- 12 May- 12 Jul- 12 Sep- 12 Nov- 12 Jan- 13 Mar- 13 May- 13 Jul Amount of Mining Equity Capital Raised ($M) Number of Financings 12

13 Mining: Equity Capital Raised on TSX/TSXV $2.2 Billion raised by TSX and TSXV listed issuers in the first half of 2013 USA: $297M UK/Europe: $110M Africa: $373M Latin America: $597M Australia: $99M Equity capital raised on TSX and TSXV for mining companies by location of project Source: TSX/TSXV Market Intelligence Group, YTD June

14 2013 Mining New Listings TSX Venture Exchange 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 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 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 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 Delta Gold Corp., Gold in Australia, Czech Republic and California YTD July by Project Location 14

15 The Leading Exchange for Mining Companies in Africa Number of Mining Companies in Africa 36 Number of Countries in Africa Where TSX/TSXV Cos. are Mining $1.7B Number of African Mining Properties Number of mining companies exploring in UN Subregions of Africa Northern Africa Western Africa Central Africa Eastern Africa Amount of Equity Capital Raised in 2012 for African Mining Projects $373 Million Raised in H Number of New Mining Listings with Projects in Africa YTD October Southern Africa 41 Unless otherwise noted, all numbers are as at September 5,

16 Alternative Financing Tools 1. Royalties/Streaming 2. Joint Ventures 3. Private Equity

17 2013 Largest Mining Financings: TSX Toronto Stock Exchange 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 Allied Nevada Gold Corp. ON $176.1M Secondary Offering Gold Ontario USA (NV) $154.3 M Secondary Offering Gold USA (NV) Guyana Goldfields Inc. Paladin Energy Ltd. ON $100.0M Secondary Offering Gold Australia $81.6M Private Placement Uranium Brazil,French Guiana,Guyana, Suriname,Venezuela Malawi, Namibia, Niger, Australia, Newfoundland Kirkland Lake Gold Inc. Banro Corporation ON $69.0M Secondary Offering Gold Ontario 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. San Gold Corporation Brazil $51.7M Private Placement Potash, Phosphate Brazil MB $50.0M Secondary Offering Gold Manitoba YTD August

18 2013 Largest Mining Financings: TSXV TSX Venture Exchange Company HQ Location Gross Proceeds Type of Financing Commodity Sought Property Location Santacruz Silver Mining Ltd. Corsa Coal Corp. Dunav Resources Ltd. Maudore Minerals Ltd. Aldridge Minerals Inc. Panoro Minerals Ltd. Monument Mining Limited Probe Mines Limited EastCoal Inc. ATAC Resources Ltd. Mexico $40.4M Shares for Debt Silver Mexico BC $31.0M Private Placement Coal USA (MD, PA) Quebec $16.8 M Private Placement Gold, Copper, Molybdenum Serbia Quebec $15.5M Private Placement Gold Quebec BC $15.0M Private Placement BC $15.0M Public Offering Gold, Silver, Copper, Lead, Zinc Gold, Copper, Molybdenum Turkey Peru BC $15.0M Private Placement Gold Malaysia ON $15.0M Private Placement Gold Ontario, Quebec BC $13.1M Private Placement Coal Ukraine BC $13.0M Private Placement Gold Yukon YTD August

19 2013 Mining New Listings Toronto Stock Exchange Toronto Stock Exchange 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 YTD August

20 Monthly Volume Traded: TSX and TSXV Mining 12.0 Volume Traded (Billions of Shares) Oct- 08 Nov- 08 Dec- 08 Jan- 09 Feb- 09 Mar- 09 Apr- 09 May- 09 Jun- 09 Jul- 09 Aug- 09 Sep- 09 Oct- 09 Nov- 09 Dec- 09 Jan- 10 Feb- 10 Mar- 10 Apr- 10 May- 10 Jun- 10 Jul- 10 Aug- 10 Sep- 10 Oct- 10 Nov- 10 Dec- 10 Jan- 11 Feb- 11 Mar- 11 Apr- 11 May- 11 Jun- 11 Jul- 11 Aug- 11 Sep- 11 Oct- 11 Nov- 11 Dec- 11 Jan- 12 Feb- 12 Mar- 12 Apr- 12 May- 12 Jun- 12 Jul- 12 Aug- 12 Sep- 12 Oct- 12 Nov- 12 Dec- 12 Jan- 13 Feb- 13 Mar- 13 Apr- 13 May- 13 Jun- 13 Jul

21 Quarterly Mining New Listings TSX TSXV 21

22 Mining Delistings TSX TSXV YTD August YTD August Failure to Meet Continued Listing Requirements At the request of the company Following M&A Failure to Meet Continued Listing Requirements At the request of the company Following M&A 22

23 The Mining Sector Orlee Wertheim. Head of Global Mining Business Development Graham Dallas. Head of Business Development EMEA