Mining and exploration markets breaking records

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The first half of 2021 has been an impressive bull market for mining and exploration stocks, with the total value of shares traded in mining and exploration companies on the TSX, TSX-V, LSE and AIM up by an average of 9% compared to the same period last year, achieving the highest collective mid-year trading value in over eight years, GBP184 billion (Figure 1).


Mid-Year Mining Trading Values of mining companies on the TSX, TSX-V, LSE and AIM markets


Figure 1: Mid-Year Mining Trading Values of mining companies on the TSX, TSX-V, LSE and AIM markets


Source: Compiled by Metals and Mining Research Corporation.


Interim trading values for mining companies both the AIM and TSX-V markets were up a staggering, 138% and 170%, respectively, compared to mid-year last year. Trading values on the TSX-V are at their highest mid-year levels since before 2013, at C$10.2 billion (Figure 2 – Blue Line), and mid-year trading values on AIM are at their highest levels since June 2011, at GBP5.2 billion (Figure 2 – Yellow Line).


Mid-Year Mining Trading Values of mining companies on the TSX-V and AIM markets


Figure 2: Mid-Year Mining Trading Values of mining companies on the TSX-V and AIM markets


Source: Compiled by Metals and Mining Research Corporation.


Since January there has been a staggering 349 secondary issues, the highest number of mining secondary issues on AIM by mid-year in over 20 years (Figure 3 – Green Line) and up 128% on the same period last year. These secondary issues have raised a total of GBP521.86 million, which is the largest amount of capital raised on AIM by mid-year since 2011 (Figure 3 – Blue Line) and is up 538% on the same period last year.


Mid-Year Mining Secondary Issues and Amounts raised on the AIM market


Figure 3: Mid-Year Mining Secondary Issues and Amounts raised on the AIM market


Source: Compiled by Metals and Mining Research Corporation.


But despite this wealth of secondary activity the IPO market for AIM mining companies remains muted, with just three mining IPO’s on the AIM market rasing a total of GBP8.21 million, which is well below the 51 mining IPO’s seen by mid-year 2005, raising a total of GBP267.4 million.


Over the pond on the TSX-V there were 727 secondary issues, the highest number of mining issues by mid-year in eight years (Figure 4 – Orange Line), 29% up on the same period last year. These secondary issues raised a total of over C$3.3 billion (Figure 4 – Blue Line), the largest amount of money raised on the venture exchange by mid-year in over eight years, and 185% up on the same period last year.


Mid-Year Mining Secondary Issues and Amounts raised on the TSX-V market


Figure 4: Mid-Year Mining Secondary Issues and Amounts raised on the TSX-V market


Source: Compiled by Metals and Mining Research Corporation.


Unlike the AIM IPO market, the TSX-V has seen a wealth of transactions with 41 completed by mid-year, raising a total of C$46 million. This is a 193% increase on the same period the previous year and the largest volume of new issues since by mid-year since 2012.


The bull market for mining and exploration stocks is now in full swing with the first half of the year being one of the strongest for the sector on record. We know of a wealth of mining and exploration IPO’s looking to list in London and Canada during the second half of the year and we are anticipating a strong finish to the year from the sector.


Metal prices remain relatively high and metal inventories remain low, demand from international and national scale development projects is high, as Governments look to stimulate growth through infrastructural spending. The near-term fundamentals for the mining and exploration sector appear strong on both sides of the pond.

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