As the price of gold rises and green initiatives such as electric vehicles gain momentum, investor interest in the mining and exploration industry is on the upswing. The 2023 Tracking Trends Report from Deloitte focuses on the indispensable value that mining and metals companies can deliver and states, "As the energy transition accelerates, the demand for metals and minerals will grow."
The mining companies are attracting renewed attention from investors, and this sentiment was palpable at the 2023 PDAC conference held in March. While junior exploration companies may be slower to feel the impact of this shift, there are signs that change is on the horizon.
Interestingly, 40% of the world's public mining companies are trading on the TSX and the TSX Venture Exchange. However, the Canadian Securities Exchange (CSE) has been experiencing exponential growth over the past several years and is making its presence known in the junior mining space. As a services provider to small-caps, I have observed firsthand how the CSE has become an increasingly attractive option for companies looking to go public. But the numbers speak for themselves; the CSE's February 2023 performance statistics have been released, including ten new listings and five initial public offerings. CSE issuers also completed 78 financings that raised an aggregate of CAD 80 million.
Here are some key takeaways to keep in mind:
Rising gold prices and green initiatives contribute to investors' renewed interest in the mining industry.
The CSE is experiencing significant growth and is becoming an attractive option for junior mining companies looking to go public.
The mining industry's future is uncertain, but one thing is clear: there is plenty of opportunity for growth and innovation.
Which metals and minerals do you believe will be in the highest demand in the next few years, and why?
Stock Exchange Issuer and Market Cap Data Sources
Deloitte Article and Video https://bit.ly/3GNm1gI
CSE Feb 2023 Statistics https://bit.ly/41vZsWp
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