Mining firms’ cash-raising lifts TSX as deals slow – by Geoffrey Morgan (Bloomberg News – May 23, 2023)

The one bright spot in Canadian equity capital markets this year has been mining and metals companies. But whether that’s a glass half full or half empty for this sector is up for debate.

Firms in the materials sector have raised $1.6 billion (US$1.2 billion) on the Toronto Stock Exchange since the beginning of 2023, or about 71 per cent of the total brought in by all firms on the exchange. Moreover, miners, headlined by Capstone Copper Corp.’s $327-million deal announced in March, accounted for eight of the 10 largest issuances.

That sector dominance has been mirrored on the small- to mid-cap TSX-Venture Exchange, where basic materials companies made up 75 per cent of the total $1.6 billion raised so far this year.

Mining firms are tapping Canada’s equity markets even as other sectors are struggling to raise funds. The amount of equity issuance on the Toronto Stock Exchange is down 7.5 per cent from this time last year largely due to a 20 per cent drop in total capital raised by companies in the industrial, technology, energy and consumer sectors.

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