Canada's mining industry enjoyed a huge boost in the sale of stocks on Canada's two leading stock markets this year, according to reports from Reuters and The Northern Miner.
The amount of money raised for mining on the TSX (Toronto Stock Exchange) and the TSXV (TSX Venture Exchange) rose by more than 62 per cent, said data provided by TMX, the parent company.
Mining industry companies listed on the indexes sold shares for $6.8 billion in this year’s first six months vs. $4.2 billion in the same period last year, figures show. The mining industry is TMX’s largest sector by capital raising, listed stocks and volume traded, according to monthly reports, said the Miner.
Both the TSX and the TSXV hold more listings for mining companies than any other exchange in the world, including New York and London. Roughly 40 per cent of the world's public mining companies are listed with the Toronto exchanges.
The Northern Miner also reported that Dean McPherson, TSX global head of mining, was encouraged by the data from the first half of the year.
“In terms of financing, that’s a key indicator of investors’ attitude and that’s been trending up," McPherson told the Miner.
In general terms, Reuters reported Aug. 8 that Canada's main stock index climbed by the most in six months, as stocks that are sensitive to the economic outlook led a broad-based rally after U.S. jobless claims data eased fears of a slowdown in activity.
"The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE), ended up 344.66 points, or 1.58 per cent, at 22,225.61, – its biggest advance since Feb. 15," said Reuters.
TMX reported that First Quantum Minerals, a Vancouver-based mining firm, was the company with the largest capital investments in the first half of the year, raising roughly $1.5 billion for the restructuring of the Cobre Panama copper mine.
Len Gillis covers mining and health care for Sudbury.com.
