Mining companies require capital to fund exploration efforts and mine development, and historically, equity markets have been the main source of mining finance, with the London, Toronto and Australian stock exchanges providing the platforms to access capital. However, going forward, the choice will increase with the Asian and emerging market exchanges fighting for a share of this activity.
We provide a brief overview of the key characteristics of the key markets in terms of market size and profile, as well as regulation and process; however these considerations are to some degree secondary.
The starting point in any listing is the equity story. Have you thought about your story and who will buy it? How are you going to maximise the value of your mineral resource portfolio, carry out your development programme, achieve cost efficient production levels, get unencumbered access to the best transportation routes, secure off-take agreements or other supply arrangements and achieve commodity synergies? All these issues need to be thought through at the outset. Clear strategy and a well developed equity story are the foundations that will support the success of your listing. In order to maximise success of your listing and life as a public company, you then need access to finance professionals and market analysts with a deep knowledge of the mining industry and a commodity focus and investors who understand the risks of investing in mining companies.
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