May Two-Four: Toronto exchanges ‘toast of the town’
More than half of the 50 top performing companies on the TSX Venture Exchange operate in the resources sector, highlighting the attractiveness of Canada’s exchanges for mining investment.
The 2025 TSX Venture 50 spotlights how mining and innovation companies are advancing Canada’s long-term economic agenda and global competitiveness. A defining theme in the 2024 rankings is the dominance of resources companies, which account for 31 out of the top 50 performers.
Canadian explorer Power Metallic Mines (TSX-V:PNPN), formerly called Power Nickel before rebranding earlier this year, is the highest ranking mining company and sits fourth on the list with a share price appreciation of 365% in 2024.
Other top mining companies to make the list include Founders Metals (TSX-V:FDR), Q2 Metals (TSX-V:TWO), Artemis Gold (TSX-V:ARTG), American Eagle Gold Corp (TSX-V:AE), and ATEX Resources (TSX-V:ATX), to name a few.
As mining executives spoken to in part one of the May Two-Four series agree, the catalysts in 2025 driving the performance of Canada’s mining companies include developing the critical metals sector, a Canada-first focus (thanks to Trump), and a concerted push for being self-sufficient following the federal election.
Part one was published on Victoria Day (19 May). Last year, Mining.com.au published its inaugural May Two-Four series in celebration of the statutory holiday. In Québec this holiday is called National Patriotes Day (Journée nationale des patriotes or Fête des Patriotes).
This year’s May Two-Four series celebrates the mining sector and its workers as Canada honours Victoria Day.
Lion’s share of listings
Speaking to Mining.com.au, Opawica Explorations (TSX-V:OPW) CEO Blake Morgan says Canada-first policies will be the driving force of growth this year. And because of this Morgan thinks there will be more investment and opportunity in the Canadian resource sector as the country pushes to become self-sufficient.
“We are already seeing billions of dollars being poured into the critical metals department which leads to more funding and more discoveries giving the opportunity for investors to grow,” Morgan tells this news service.
With 1,097 listed mining companies, the Toronto Stock Exchange (TSX) with 184 and the TSX Venture Exchange (TSX-V) with 913 are home to 40% of global public mining companies. Last year, 41 new mining listings debuted on the exchanges – up 46% from 2023. These Toronto exchanges boasted more new listings of resources companies than any other bourse.
Publicly listed TMX Group (TSX:X) owns and operates the TSX and TSX-V. However, these stock markets are a part of a bigger family with offices globally in Austria, London, Vancouver, Calgary, Montreal, Toronto, to name a few.
Speaking to Mining.com.au, TSX Head of Mining Dean McPherson says the group is a global company which puts clients first and hence the Toronto exchanges are the toast of the town amongst junior explorers.
“One of the reasons we are such a great market for so many global companies is that we can effectively and efficiently provide a suite of services ranging from clearing services to news wire services to energy trading, all globally,” McPherson tells this news service.
McPherson notes the TSX-V is 58% mining and 32% of the group’s overall markets (TSX+TSX-V), adding that the dominance of the mining sector last year is consistent with the prior four years.
“Last year the mining sector raised more capital than any other sector. This is consistent with observations beyond our markets as well. We continue to outperform other sectors for the past five years. The returns we saw last year were above what we saw in 2023, which was a down year no doubt,” he continues.
Lion Selection Group (ASX:LSX) Managing Director Hedley Widdup is closely monitoring the IPO market in North America. Calling it the litmus test, Widdup notes that once you can raise money again to list a new company, liquidity is properly back and into the explorers.
“But it’s too early for this measure to mean much and I am not sure I can see a pipeline building just yet,” Widdup tells Mining.com.au.
According to Lion Selection Group’s Managing Director, the North American market tends to see far lower volumes of IPOs than that seen on the ASX, because of the way that projects find their way into listed companies in both markets.
“You can list companies at far earlier commercial stages in North America and on subsidiary exchanges, whereas in Australia you need to meet a (relatively) higher threshold of maturity to list in Australia,” he continues.
Miners ‘toast’ Toronto
The Toronto Stock Exchange and TSX Venture Exchange have long been the global hub for mining and exploration companies, thanks to their well-established presence in the resources sector.
Graham Carman, Managing Director of zinc-focused explorer Tinka Resources (TSX-V:TK), says the exchanges are highly attractive for mining and exploration companies due to the robust listing requirements, access to capital, and global visibility.
“With 40% of global public mining companies listed on these exchanges, they offer a strong international network of investors, financial institutions, and strategic partners,” Carman tells this news service.
“The TSX-V in particular serves as an excellent platform for early stage exploration companies like Tinka Resources to raise capital and to grow.”
“The TSX-V in particular serves as an excellent platform for early stage exploration companies like Tinka Resources to raise capital and to grow”
As Opawica’s Blake Morgan explains to Mining.com.au, these Toronto exchanges boast more new listings of resources companies than any other bourse predominantly because its a streamlined process that’s sped up through government policies, instead of the usual, being slowed down by government policy.
“With so much opportunity in the region I’m not surprised by the growth and expect it to continue. Tax concessions, the critical mineral funds all help with growth. Less red tape means more growth in most cases,” Morgan continues.
Conversely, for James Cross, CEO of Canadian explorer E-Power Resources (CSE:EPR), the premier bourse for mining is the Canadian Securities Exchange. Cross says the TSX-V is a legacy brand “that used to be great for junior companies, but is now more burdensome than juniors can handle”.
“It started as a great idea, but has deteriorated into a bureaucratic nightmare. On the other hand, the CSE is growing, and far less burdensome. The CSE treats companies like customers, rather than targets. In the first quarter of 2025 alone, the CSE had seven new listings, and six of those are mining,” E-Power’s CEO says.
Patrick Cruickshank, CEO of Toronto-based critical minerals explorer Nine Mile Metals (CSE:NINE), concurs to a degree but adds that like Australia, Canada has a very educated and traditional resource investors market.
“So you’re seeing some more access and that’s what the CSE, TSX, and the ASX is for small caps, focused on resource stocks. They’re fantastic exchanges to have that kind of size and scale,” Cruickshank tells Mining.com.au.
“You know the US doesn’t have it or they have the pink sheets and OTC, which do not have the same protections for the investor so I’m very, very happy to be on the CSE.”
Despite the success of Canada’s stock exchanges and their attractiveness to mining companies, North Bay Resources (OTC:NBRI) CEO Jared Lazerson believes there is still a structural problem in terms of how capital inflows into the market.
“The private equity money, they’re not sophisticated enough. They’re not like in Australia, where people are sophisticated enough to figure it out. If it’s a good deal and they want to invest, they’ll find a way. Royalty, direct investment. They’ve got the engineers and the geologists, they can hire consultants and so forth,” the CEO says.
“The big money in the US and Canada, well, Canada is a little different, but the big money in the US does, they have that ability. Even people in the mining sector, they’re not really capable of doing direct investment.
“Like I said, the problem is now, it’s a credibility thing. The market caps are so low, and a lot of these companies are so screwed up in some way or another that it’s just very hard for people to put in. How do you invest $10 million in a company that’s worth four?”
Catalysts for growth
When asked what the catalysts will be to drive the performance of Canada’s mining companies, E-Power’s James Cross states his view clearly: “The world just woke up to the problem we have been screaming about for a generation. It can no longer be ignored. There has been massive underinvestment for decades.”
“The resources they consume do not fall out of the sky. Reckoning day is here. Political types and major corporations can no longer take a head-in-the-sand approach. They will have to help us, or at the very least, get out of the way.”
Adding to this, Graham Carman, Managing Director Tinka Resources (TSX-V:TK) notes Canada is a highly competitive country in the global resources sector. He says the resource landscape has been reshaped by the outcomes of both the recent US federal and Canadian elections.
“Policy changes around the recently imposed tariffs by the US on Canada, and other nations in particular China, are changing the dynamics of world trade,” Carman explains to this news service.
“Policy changes around the recently imposed tariffs by the US on Canada, and other nations in particular China, are changing the dynamics of world trade”
“While the US is Canada’s major trading partner, the on-again off-again tariffs imposed by the US have forced Canada to seek to diversify its trading partnerships with other leading nations.
“In the coming months, we expect that the trade war will likely ease which should benefit the Canadian economy and the resource sector. We are confident that the new Canadian government will focus on highly streamed and efficient permitting regimes and environmental regulations, and retain a competitive resource taxation system.
“As for metals prices, we expect demand for critical minerals to continue to rise over time, creating opportunities for Canadian resource companies like Tinka, who have high quality undeveloped base and critical metal assets in mining jurisdictions.”
Lion Selection Group’s Widdup says one clear symptom of the Trump spectre over the market is a new uncertainty about what is around the corner. This in turn could be forcing investors to re-assess valuations and what they are happy to pay for distant future earnings.
Widdup says the last decade has driven a strong focus on jurisdiction risk, which means consolidation around current operations more so than biting off new ones. As Trump’s administration continues, producers are very unlikely to go outside their own countries – in Australia at least.
“Ditto Canadians, with a North American preference. The Chinese have been very active in Africa, and there is no FIRB (Foreign Investment Review Board) to stand in their way there,” Widdup adds.
“I’d say the trend of capital raisings will be positive, led by gold and copper. This is significant because these are big market commodities. When lithium was hot it got money raised and drove some share prices but that market is tiny in comparison.
“When gold and copper are moving it’s because there is a lot of money moving in their direction – it has to be to move them.”
Critical time for juniors
Copper Lake Resources (TSX-V:CPL) CEO Terry MacDonald agrees, adding that commodity prices for critical minerals will be a key catalyst for the market’s growth in 2025, noting that copper is again closing in on the US$5 per pound target.
However, MacDonald notes that many junior mining companies in Canada that have good properties, many with resources, are greatly undervalued, including Copper Lake.
“This is most prevalent in the base metals sector which has been in a down cycle for several years now, despite the recent improvement in base metal prices. This represents a once-in-a-generation buying opportunity for the savvy investor,” he tells this news service.
One example is Copper Lake Resources, which has two properties in Ontario – Marshall Lake and Norton Lake. Both properties have resources – Norton Lake has a current 43-101 resource. MacDonald says Norton Lake has an NSR value of US$335 million measured and indicated and another US$103 million inferred, with the resource open at depth.
Copper Lake’s CEO laments how the company had a market capitalisation of C$38 million in 2022 but today it sits at around C$2.705 million.
“The decline in value is largely attributed to the difficulty in obtaining financing that many juniors in Canada have experienced over the last two years,” MacDonald adds.
“The decline in share price is also noticeable where companies have used flow-through financing. Flow-through financing is a Canadian tax incentive that allows the investor to claim the value of their investment as a tax deduction – the government is effectively allowing the company to flow through their tax losses to the investor, making the investment much more attractive for the investor.
“Unfortunately for companies that utilise this form of financing, much of the investing is done through special funds, and these funds often sell the shares as soon as the four-month hold period expires. This can result in a huge number of shares being sold which can significantly depress the share price. This was a significant contributing factor for Copper Lake in April 2022 and April 2023.
“In short, you have a company with valuable resources and significant additional exploration potential that is trading at a fraction of its value.”
While this may be true for many junior exploration companies, the latest 2025 TSX Venture 50 list with 31 out of the top 50 performers being mining companies is a beacon of light suggesting the market might be beginning to turn.
And Canada is well-positioned to capitalise on this. The country is often toast of the town globally regarding hydroelectricity, nuclear power, and hydrogen and is well positioned to benefit from rising domestic and global demand. Currently, the energy sector directly or indirectly supports nearly 663,000 jobs and accounts for 10.1% of the Canadian economy.
As of September 2024, there are 504 major projects under construction or planned over the next 10 years in Canada in the energy, forest, and mining sectors, which have a combined potential capital value of C$632.6 billion. This is an increase from 2023 in both the overall project count (from 493 projects) and capital value from C$570.5 billion.
Will the Canadian Securities, Toronto Stock, and TSX Venture exchanges continue to be the toast of the town, or will mining companies end up drowning their sorrows with a ‘two-four’ in 2025? Only time will tell.
Write to Adam Orlando at Mining.com.au
Images: Mining.com.au, The Canadian Press/Evan Buhler & Unsplash
