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TSX Mining Stocks Also Listed on the ASX
Feb. 22, 2023 01:50PM PST
Interested in mining stocks that are dual-listed on the ASX and TSX? We’ve rounded up a list of the biggest dual-listed mining companies.
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 increased in popularity thanks to companies that wish to reach more investors while also maintaining 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.
Why do ASX mining companies dual list?
As previously mentioned, Australian and Canadian companies that dual list on both the ASX and the TSX tend to do so 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, miners stand a greater chance of obtaining financing and raising the capital needed to fund the exploration of their assets on a grander scale.
There is, of course, a second worthwhile reason that encourages Australian companies to seek out the TSX and vice versa — 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.
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 a 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, these companies 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.”
Below, the Investing News Network has outlined the five TSX- and ASX-listed mining stocks with market caps above AU$2 billion. All the information for this article was collected on December 19, 2022, from TradingView’s stock screener.
1. Allkem
Market cap: AU$7.88 billion
Allkem (ASX:AKE,TSX:AKE) is an Australian lithium chemicals company. In November 2021, Galaxy Lithium and Orocobre merged and formally changed their name to Allkem. The merger currently owns and runs seven different operations worldwide, including projects on four different continents.
On April 14, 2022, Allkem released its strategy for the next decade. It includes plans to increase lithium production “3-fold by 2026” while also maintaining a 10 percent share of the global lithium market for the next 10 years. In November, alongside partner Toyota Tsusho (TSE:8015), Allkem announced the very first production of the lithium hydroxide product at the Nahara plant in Japan.
2. SSR Mining
Market cap: AU$4.6 billion
SSR Mining (ASX:SSR,TSX:SSRM), formerly Silver Standard Resources, is a leading cashflow-focused intermediate gold company based out of Denver, Colorado. In 2020, SSR Mining officially merged with Alacer Gold. The company has production, development and exploration operations in Asia and the Americas.
In October 2022, the company announced, in an agreement with Lidya Mining, that it will be acquiring another 30 percent of the Kartaltepe joint venture in the Çöpler district for $150 million in cash; SSR now owns 80 percent of the Çöpler district.
3. Champion Iron
Market cap: AU$3.59 billion
Champion Iron (ASX:CIA,TSX:CIA) is an internationally run iron ore mining and development company based out of New South Wales, Australia. The company is focused on high-grade mining and development through its two mining projects in Canada as well as its numerous Canadian exploration projects. Champion Iron’s flagship projects are its Kamistiatusset project in Newfoundland and Labrador, and its Bloom Lake mine and the consolidated Fire Lake North projects, both in Québec.
On May 17, 2022, Champion Iron entered a purchase agreement and acquired the Pointe Noire pelletizing facility from Société Ferroviaire et Portuaire de Pointe-Noire (SFPPN) for a consideration of C$2.5 million. Already, Champion has entered a memorandum of understanding with an international steel company to complete a feasibility study for the plant in the latter half of 2023.
4. NexGen Energy
Market cap: AU$2.91 billion
NexGen Energy (ASX:NXG,TSX:NXE) is a Canada-based company with a focus on the production of clean energy fuel. Rook 1 is the company’s flagship project located in Saskatchewan.
Rook 1 has an expected lifespan of 10.7 years at a capacity of 1,300 tonnes per day. NexGen Energy has successfully completed a feasibility study in 2021, and the next stage of development is projected to be finished in early 2023. NexGen states Rook 1's feasibility study "outlines an initial 11 year mine capable of producing 29 Mlbs U308 per anum (first 5 years), making it the largest and lowest cost uranium mine in the world."
5. Perseus Mining
Market cap: AU$2.91 billion
Perseus Mining (ASX:PRU,TSX:PRU) is a fast-growing African gold explorer, developer and producer. The company runs three mines in two countries: Ghana and Côte d’Ivoire. The Ekidan mine in Ghana was the company's first mine and it began commercial operations in 2012. The company then developed two of its properties in Côte d’Ivoire and brought them into production; Sissingué entered production in January 2018 and the Yaouré mine in March 2021.
In 2022, Perseus Mining produced over 500,000 ounces of gold. Perseus Mining acquired Orca Gold in May 2022 and now owns 70 percent of Orca's Meyas Sand project and 31.4 percent of the Côte d’Ivoire Koné project.
In October, the company announced that it has become a shareholder of Mako Gold with 2.94 percent equity. Mako is a West African gold exploration company that recently raised its interest in its flagship Napié gold project to 90 percent.
This is an updated version of an article first published by the Investing News Network in 2020.
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Securities Disclosure: I, Marlee John, hold no direct investment interest in any company mentioned in this article.
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