Canadian miners flocking to the ASX

The Australian Securities Exchange is experiencing an influx of Canadian producers seeking dual listings.There has been a trickle of dual listings on the ASX since 2018,, but the trend has significantly accelerated following Canadian uranium developer NexGen Energy (TSX: NXE), adding an Australian listing in 2021.Capstone Copper’s (TSX: CS) ASX listing in February 2024, however, seemed to have open the floodgates, with a further four Canadian mining companies initiating the listing process since.The ASX has been capitalizing on weaker market conditions in Canada, conducting roadshows to attract new companies. “Resources companies have really been struggling to attract capital in Canada,” BDO deal advisory partner Adam Myers told the recent RIU Explorers Conference in Perth. “The ASX is certainly a great place to be exposed to this market.”ASX senior manager, listings Sasha Conoplia told MINING.COM that Canadian interest in dual listings is growing, particularly following Capstone’s experience.“The resources sector is the largest on ASX by number of listings and that brings a sophisticated Australian and global institutional and retail investor base that can provide capital and liquidity,” he said.Conoplia noted that the ASX ranks first globally in market capitalization, IPOs, and capital raisings for metals and mining companies.“The Australian capital markets ecosystem for resources is deep and well developed with strong research coverage and global capital support,” he said. “For companies listing on ASX the market offers competitive valuations across sectors, earlier index inclusion than other global peers, and access to global institutional capital.”The Capstone exampleCapstone started trading in Sydney last year with two million CHESS depositary interests (CDIs), an instrument that provides investors with the same beneficial interests as holding shares. Since then, the number of CDIs has grown to 185.1 million by the end of February, bolstered by an April 2024 block trade by Orion.Capstone director of investor relations for the Asia Pacific region Michael Slifirski told MINING.COM that the lack of quality copper names on the ASX was an opportunity for the company, particularly after BHP’s (ASX: BHP) acquisition of OZ Minerals in 2023.Unlike SSR Mining (TSX: SSR), which announced this week that it was delisting from the ASX due to low liquidity, Capstone has been increasing the proportion of trading in Australia.Slifirski emphasized that a successful listing requires commitment.“It’s not a case of list and investors will buy – far from it,” he said. “The investment case has to be compelling and relevant in quality and scale relative to existing ASX investment opportunities and then needs to be well supported by a committed and credible team that wants it to work.”Other copper plays followIn late January, another South America-focused copper play, Marimaca Copper Corp (TSX: MARI), lodged a prospectus for an ASX listing, aiming to list on March 13 after raising A$600 to meet ASX admission requirements. Marimaca CEO Hayden Locke, an Australian, highlighted the importance of accessing a broader capital pool as the company nears a construction decision for its Marimaca oxide deposit.“As we move closer to a construction decision for the Marimaca oxide deposit, and continue our aggressive exploration plans, a broader pool of capital will become increasingly important to our company,” Locke, who is Australian, said.Last month, Vancouver-based junior Pampa Metals (CSE: PM) announced it was acquiring fellow South America-focused explorer Rugby Resources (TSXV: RUG) and dual list the enlarged entity on the ASX.Pampa investor relations advisor Jordan Webster said the company’s Australian CEO, Joseph van den Elsen, understands the local capital market well.“Since he took over the company, we believe liquidity in Canada hasn’t been great, while the Australian market has remained much stronger,” Webster said.“We also believe Pampa can stand out on the ASX as a unique story – two discovered high-grade porphyries in South America, which is rare for a junior explorer. Canada is already saturated with South American copper explorers, so we’re confident we will see better visibility and investor engagement in Australia.”African miners on the wayThe ASX, already home to West Africa-focused gold producers Perseus Mining (ASX: PRU) and West African Resources (ASX: WAF), may soon welcome two more.Orezone Gold Corporation (TSX: ORE) announced last month that it was pursuing a secondary listing on the ASX to support the expansion of its flagship Bomboré mine in Burkina Faso. The company hopes the listing will enhance liquidity and attract mining-focused funds restricted to ASX-listed issuers.Smaller gold company Robex Resources (TSX: RBX) is planning to delist from the TSX entirely and migrate to the ASX. The company, which is looking to exit Mali and achieve first gold at its Kiniero project in Guinea by the end of the year, likely aims to capitalize on the success of ASX market darling Predictive Discovery (ASX: PDI), which owns the neighbouring Bankan deposit.Robert Friedland’s private Guinea-focused iron ore developer, Ivanhoe Atlantic, has also  selected the ASX for its initial public offering, which is reportedly looking to raise up to A$300 million.Ivanhoe Atlantic CEO Bronwyn Barnes said the company considered various bourses. “Given the strong knowledge of the iron ore market on the ASX and the familiarity of Australia with African mining projects generally and Guinea in particular, a listing on the ASX made sense for us,” she said.London stock being deserted The TSX isn’t the only exchange losing mining companies. The London Stock Exchange (LSE) has also suffered an exodus, with Glencore CEO Gary Nagle suggesting the company may leave the LSE, though not necessarily for Australia.Greatland Gold (LON: GGP), which has considered an ASX listing for years, confirmed this week that it is targeting a cross-listing in the June quarter. “As a significant Australian gold-copper producer, the ASX listing is intended to provide benefits including an enhanced capital markets profile and increased institutional ownership and index participation,” CEO Shaun Day said.Ecuador-focused SolGold (LON: SOLG) is also considering an ASX listing. The company, originally formed in Australia but now based in London, recently appointed Dan Vujcic as CEO. Vujcic, previously CFO of ASX-listed MAC Copper (ASX: MAC), said he sees the ASX as a natural fit for SolGold. “The ASX is a natural home for a copper and gold portfolio of this quality,” he said.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com