Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Canada’s Toronto Stock Exchange will launch on Tuesday a battery metals index to support the critical minerals sector and offer insights into the energy transition.
The S&P/TSX Battery Metals Index will track Canadian-listed companies engaged in the production and exploration of metals used in the making of batteries that power electric cars or are used in renewable energy, including copper, nickel, cobalt and lithium.
“Global demand for battery metals continues to gain momentum and the goal of this new benchmark is to provide investors increased exposure to, and deeper insights into the cleantech and energy transition story,” Loui Anastasopoulos, chief executive of the Toronto Stock Exchange, said in the statement.
The new benchmark’s top five constituent firms are Turquoise Hill Resources (TSX: TRQ), Teck Resources (TSX: TECK.B), Sierra Metals (TSX: SMT), First Quantum Minerals (TSX: FM) and Lundin Mining (TSX: LUN).
Other heavyweights to be tracked are Ero Copper (TSX: ERO), Hudbay Minerals (TSX: HBM), China Gold International (TSX: CGG), Copper Mountain Mining (TSX: CMMC) and Taseko Mines (TSX: TKO).
Last year, companies focused on critical and battery minerals accounted for more than 25% of the total equity capital raised by the mining sector on TSX and TSX-V, the exchange said.
The Canadian government in its latest national budget set aside C$3.8 billion (about $3bn) for critical minerals, considered integral building blocks to achieve the nation’s goal to reach net zero by 2050.
As part of this strategy, Natural Resources Canada (NRCan) is granting almost C$11 million ($8.6m) to companies that win a call for proposals to build local pilot processing plants of the critical minerals.
