Tectonic Metals gets funding for gold exploration in Alaska
The company's Flat gold project is located 40 km north of the giant Donlin gold project.
Market capitalisation for miners on the TSX and TSX Venture rose from Can$325 billion in 2009 to $467 billion in 2010, according to a study released by Ernst & Young on Wednesday.
The study also found that the mining sector raised $17.7 billion through IPOs and private placements, eclipsing the oil and gas industry which only managed $11.3 billion.
In 2010 there were 52 mining initial public offerings on the TSX and TSX Venture that raised more than $1.3 billion.
“Listings on the Canadian exchanges have doubled since 2009, with the Venture and TSX appreciating 50 and 14%, respectively,” says Tom Whelan, Leader of Ernst & Young’s national mining and metals practice. “Strong commodity prices and the fundamental need to develop long-term reserves will continue to drive activity into 2011, particularly in the gold sector. We’ve also seen sustained interest in potash as the global race to secure fertilizer assets carries on.”
The cut-off to become a member of the TSX top 100 rose from $430 million to $809 million this year as 18 new entrants joined the list, raising the market capitalization threshold by 88%. In 2010, 80 companies on the TSX had a market capitalization of over $1 billion, compared to just 54 companies in 2009. Approximately 61% of new entrants were focused on gold. Following its surge in price, silver represented the second-largest commodity of entrants. Copper also stepped into the spotlight, with its global supply/demand conditions expected to remain in a deficit position going into 2011 with continued strong demand from China.
