Page 24 - pd290-Feb21-mag-web

With the Americas becoming an increasingly attractive Listing and retaining a spot on multiple bourses is manageable for
destination for Australian resource companies, due powerhouses like Newcrest and often the financial commitment
consideration is naturally being given to investors can be a stretch too much for smaller companies.
familiar with jurisdictions in that part of the world. Outgoing Tempus Resources Ltd managing director Brendan
Newcrest Mining Ltd is one high profile ASX company which Borg said where best to list was a conundrum faced by Australian
turned to the TSX for a secondary listing during 2020. companies with assets in North and South America.
Having acquired a 70% stake in the Red Chris gold mine, Canada, “Some companies are put off by the additional costs and additional
in 2019 and with investments like 32% of Fruta del Norte in compliance work required with multiple listings,” Borg told Paydirt
Ecuador, Newcrest was compelled to list on the TSX given the after Tempus started trading on the TSX-V in December.
appetite for gold stocks from North American investors. “We are unique in the way that we are positioned in British
“I think it makes sense and with the number of Australian Colombia and Ecuador with our projects and the fact that we are
companies looking for projects in North America and Latin surrounded by other TSX-listed companies.”
America, I think you’ll see more of them consider listings over here North American shareholders (including Sprott) account for about
as well,” head of global mining, TSX and TSX-V Dean McPherson 15-20% of Tempus’ share register and with the appointment of a
said. Vancouver-based president – Jason Bahnsen – plus the addition
“I think as more companies look to diversify globally, I think you’ll of Canadian directors Tom Peregoodoff and Tony Cina in recent
see more companies follow Newcrest.” times, Borg’s resignation as managing director will be “confirmed
following an appropriate transition period”.

momentum in the resources sector, Atten- Metal Tiger has started to do a lot more
borough expects activity to remain concen- business in Australia through its interests in
trated in certain subsectors in 2021. the likes of Catalyst Metals Ltd, Cobre Ltd,
“The capital raising environment in min- Sandfire Resources Ltd and Southern Gold
ing to us feels a little two-paced. Gold, EV- Ltd, and McNeilly was happy with how the
related battery metals and contributors to company had been received, in no small
the green economy side are attracting con- part thanks to the efforts of the late Terry
tinued investor interest and I think we will Grammer.
see a continuation of the trend in support “I think the Aussie market really gets what
for those companies,” Attenborough said. we are trying to do. We are well liked on the
Angola-focused Pensana Rare Earths east and west coasts. We have a substan-
plc and Castillo Copper Ltd (copper/base tial balance sheet with a fair amount of capi-
metals in Queensland, New South Wales tal. I think we have the chance to become
and Zambia) were among the ASX enti- one of the preeminent investment compa-
ties which sought LSE listings last year for nies in Australia for the next 5-10 years,”
greater exposure to European investors. McNeilly said.
Despite companies in traditionally strong Head of global mining, TSX and TSX-V Dean “I think the Aussie market gets early-
mining markets such as Australia and Can- McPherson with ASX Ltd’s head of listings and stage exploration and I think it is more of
ada currently enjoying positive feedback issuer services Eddie Grieve in Perth at the a natural home for us. For now, we will be
from the investment community, Attenbor- Latin America Down Under conference in 2018 dual listed. I think we are unique in any mar-
ough expects that LSE will continue to pro- ket being a type of hybrid between prospect
vide attractive opportunities for ASX and generator and investing company. We can
TSX listed resources companies to spread tralia and Canada run hot, now is as good a get direct project exposure and we can go
their wings. time as any to be seeking exposure on the in and out of companies, and obviously we
“That has been a theme over the past relevant bourses. have some royalties. I think we are a very
2-3 years, and it was strong again last year BDO global head of natural resources good value play; a unique value play with
and we have every reason to suspect that Sherif Andrawes is seeing evidence of lower outside risk and giving exposure
they will be strong again this year,” Atten- North American companies eager to tap to potentially company changing invest-
borough said. into the rich vein of ASX market sentiment. ments.”
“We have seen companies listed else- “Three of the IPOs we are working on are With Sprott as its largest shareholder,
where come to London as they have a fu- for Canadian companies coming to Austral- Metal Tiger is well connected in North
ture potential development capital require- ia,” Andrawes told Paydirt. “They came out America already and McNeilly hopes to
ment and as a result may want to expand of our roadshow with the ASX in Canada in take advantage of its growing global out-
their investor base into the European time 2019. There is a recognition from overseas- reach.
zone and research ecosystem. They see focused companies who are starting to fo- “There are not many companies which
listing here as a bridgehead to build these cus on Australian projects.” have bridged both sides [Australia and
relationships without it being necessary to AIM-listed Metal Tiger plc is one invest- Canada] in terms of investment exposure in
raise capital on day one. ment vehicle looking to capitalise on the a publicly listed vehicle. I think that is quite
“Five of the new nine operating entities appetite for exploration plays on the ASX. an interesting take and hopefully we’ll get
that listed last year in London did it without a Speaking to Paydirt ahead of an antici- shown some of the better deals in Canada
capital raising. They did so via an introduc- pated ASX listing in early February, Metal and hopefully Australian investors can par-
tion, and I think you will see more compa- Tiger chief executive Michael McNeilly ticipate in some of that exposure,” McNeilly
nies adopt this strategy.” hoped to raise the company’s profile and said.
On the flipside, as junior sectors in Aus- increase liquidity with a bigger presence
down under. – Mark Andrews

Page 24 FeBRUaRY 2021 aUSTRaLIa’S PaYDIRT