As the mining industry continues to flourish, investors may be interested in some of the top TSX mining stocks also listed on the ASX.
Listing on both the TSX and ASX has been gaining in popularity as of late thanks to companies that wish to reach more investors while having trading variation on two separate markets.
Read on for a breakdown of why companies dual list and the top TSX mining stocks that are also available on the ASX.
TSX mining stocks also listed on the ASX: Why companies dual list
As previously mentioned, Australian companies tend to dual list on both the ASX and the TSX in order to cast a wider net and increase the number of investors they can reach. By gaining exposure to more than just one market, Australian miners stand a greater chance of obtaining financing and raising the capital needed to fund the exploration of their assets on a grander scale.
According to BDO Australia, often times it is the belief of Australian mining companies that investors who play on the TSX tend to have a greater grasp on how resource companies operate and the best ways to invest in them. This school of thought may stem from the fact that between the Australian market and the Toronto market, the TSX is more focused on companies in the resource space.
There is, of course, a second worthwhile reason that leads Australian companies to seek out the TSX — this springs from the knowledge that these companies will be operating on not one, but two markets, each with its one unique way of trading and operating.
“Spreading an organisation’s fundraising activities across two economically distinct markets may reduce an organisation’s exposure to macroeconomic factors, factors that may affect ongoing capital raising ability. This allows dual listed entities to turn to different markets at different times depending on the prevailing economic conditions of either market,” says BDO Australia.
Another intriguing component of listing on more than one exchange is that miners can take advantage of the price difference that exists between two markets. When investors know that they can purchase a stock or security on one market and sell it on another — a strategy known as arbitrage — there is a higher possibility that a dual-listed company that can provide this way of trading could be seen as more appealing option than one that cannot.
Lastly, dual listed companies often times benefit from increased liquidity. Since trading on two specific markets will generally attract a greater number of investors, Australian miner’s are of the mind that the demand in their stock will increase and in turn so will the liquidity of those stocks. According to Investopedia, “Along with the increased liquidity and choice, the bid-ask spread on the stock tends to decrease, which makes it easier for investors to buy and sell the security in the market at any time.”
TSX mining stocks also listed on the ASX: Top 5 dual-listed mining stocks
Below we’ve outlined the five TSX and ASX-listed mining stocks with market caps over AU$10 million. Data for this article was gathered using TradingView’s stock screener on February 10, 2020.
1. Alacer Gold (ASX:AQG,TSX:ASR)
Current market cap: AU$2.05 billion
Alacer Gold has an 80 percent stake in the Çöpler gold mine in Turkey, which has a mine life of 20 years. The company’s aim is to produce from multiple mines in the country.
Currently, the Çöpler mine processes ore through two producing plants and recently completed a sulphide plant. The asset will produce over 3.5 million ounces at first quartile all-in sustaining costs, generating free cash flow for approximately the next two decades.
2. OceanaGold (ASX:OGC,TSX:OGC)
Current Market Cap: AU$1.79 billion
Headquartered in Melbourne, Australia, OceanaGold is focused on production and exploration of gold, silver and copper.
The global mining company’s operating assets include the Didipio mine on Luzon Island in the Philippines, the Macraes operations on the South Island of New Zealand, the Waihi gold mine on the North Island of New Zealand and the Haile gold mine in South Carolina, United States.
3. Perseus Mining (ASX:PRU,TSX:PRU)
Current Market Cap: AU$1.31 billion
Perseus Mining began as an exploration company in 2004 and quickly acquired the historic Edikan heap leach mine in Ghana just two years later. Following significant exploration success at Edikan, the company rapidly evolved from an explorer to a developer and finally a gold producer in 2011.
In its quest to have mines in multiple jurisdictions, Perseus developed its second gold mine, the Sissingué gold mine in Côte d’Ivoire, based on an exploration discovery made early in the company’s history.
The precious metals miner continued expanding its presence within the mining space when it achieved commercial production at Sissingué in 2018, followed by the development of its third asset, the Yaouré gold mine, also located in the Côte d’Ivoire, in 2019. Perseus has stated that the first gold is expected to be produced from Yaouré in December 2020.
4. Champion Iron (ASX:CIA,TSX:CIA)
Current Market Cap: AU$1.12 billion
Champion Iron is an iron ore exploration and development company with several projects in the southern Labrador Trough, which is the largest iron ore producing region in Canada.
Through the company’s subsidiary Champion Iron Mines, the miner is currently developing eight iron rich projects, with each project strategically located close to the electrical grid, all-season roads and railway lines.
In addition to its six assets within Labrador, the company also operates two mines located in Quebec, one of which is its flagship mine, Bloom Lake.
Bloom Lake’s mineral reserves are estimated at 411.7 million tonnes, with an average content of 30 percent iron. Additionally, the iron ore project boasts an average annual concentrate production of 7.4 million tonnes and has a 21 year anticipated mine life span.
5. Orocobre (ASX:ORE,TSX:ORL)
Current Market Cap: AU$900.97 million
Orocobre is building a substantial Argentina-based industrial chemicals and minerals company through the construction and operation of its portfolio of lithium, potash and boron projects and facilities in the Puna region of Northern Argentina.
The TSX- and ASX-listed company operates the Olaroz lithium facility, which is a joint venture project between the company and Toyota Tsusho (OTC Pink:TYHOF,TSE:8015). Orocobre also has a 34.7 percent interest in exploration company Advantage Lithium (TSXV:AAL,OTCQX:AVLIF).
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Securities Disclosure: I, Nicole Rashotte, currently hold no direct investment interest in any company mentioned in this article.