- According to IBISWorld’s “Outlook for Australian Mining,” although the Australian mining sector has been affected by the pandemic, it is anticipated to recover at an annualized 2.8 per cent between now and 2024-25
- The Australian gold ore mining industry is anticipated to become the largest global producer of gold in 2021
- TSX Australia Mining Investor Day, held on November 18th, 2020, will highlight public mining companies focused on Australia
Over the past eight months, the mining sector has been enjoying a bull run led by the rise of commodity prices, particularly precious metals. Mining equities have been benefiting from broader and renewed investor interest in the sector. This interest extends across all stages of mining, from explorers to producers.
Key metrics of new listings, number of financings and amount of capital raised by mining companies are up across the board year over year. Considering the recently announced TSX30 winners, 14 of those top performers over the previous three years period are mining companies, returning an average return in excess of 200 per cent over the period.
Like Canada, Australia is one of the safest jurisdictions for mining, providing investors in the sector with relatively minimum jurisdictional risk. As mining companies grow and diversify projects globally, the TSX and TSXV will continue to highlight those projects and corresponding jurisdictions in which their issuers operate.
As investors navigate the inherent uncertainties, jurisdictions like Australia will play a leading role in the sector as investors seek to balance returns and risk factors.
TSX Australia Mining Investor Day to showcase promising companies in the sector
As the sector continues to rebound globally, the pool of global investors is expanding.
This event is an opportunity to showcase some of the outstanding work by TSX and TSXV issuers with significant projects in Australia, leveraging the stock exchange’s world-leading mining equity market to expand the reach of global investors and stakeholders.
This virtual event will highlight public mining companies focused on Australia who target global mining investors and stakeholders interested in this geological rich region, which is poised for significant growth. Investors can expect featured company presentations as well as a fireside chat.
These are the presenting companies:
Newcrest Mining (TSX: NCM)
Newcrest is one of the world's largest gold mining companies. The company is known for its strong technical capabilities in exploration, deep underground block caving and metallurgical processing skills.
They are committed to creating a work environment where everyone can go home safe and healthy every day, and where everyone actively contributes to this outcome; operating and developing mines in line with strong environmental, social and governance practices; developing a diverse workforce; and developing and maintaining strong relationships with our communities and governments.
The company recently added the TSX to its listing portfolio, after its primary listing on the Australian Securities Exchange (ASX), and its secondary listing on the PNG Exchange Market (PNGX). This North American listing reflects an interest from North American investors to get involved not only in the gold sector, but also the company.
Newcrest Managing Director and Chief Executive Officer, Sandeep Biswas, notes, “We believe the TSX listing will improve the global visibility of the company and broaden our access to the large North American capital pool."
Novo Resources Corp. (TSXV: NVO)
Novo is advancing its flagship Beatons Creek gold project to production while exploring and developing its highly prospective land package covering approximately 14,000 sq km in the Pilbara region of Western Australia. In addition to the company’s primary focus, Novo seeks to leverage its internal geological expertise to deliver value-accretive opportunities to its shareholders.
Rob Humphryson, CEO of Novo, explains, “In addition to commencing commercial production from our Beatons Creek conglomerate gold deposit early in 2021, our exploration team comprising more than a dozen highly experienced explorationists are advancing exploration efforts across Novo’s 14,000 sq km Pilbara tenement package.”
He adds, “Novo has over 100 employees now as the company readies for production and they have more conglomerate, alluvial and basement targets than employees. With a production facility soon to be operational at Nullagine in the East Pilbara, this is helping to inform the priority in which these exploration targets will be advanced.”
“Further to the ongoing exploration efforts, Novo has been undertaking extensive mechanical sorting testing in Australia and Germany. The company’s nuggety deposits are yielding outstanding laboratory results, recovering more than 90 per cent gold into a very small mass.”
According to Humphryson, “Novo takes delivery of a high powered Steinert mechanical sorter with the aim of demonstrating that a very high-grade concentrate can be generated for treatment at the Nullagine Gold Project in the East Pilbara.”
“So, all in all, a very exciting year ahead for Novo Resources as we transition into production, generating cash flow to underpin expansion plans across our vast tenement package.”
Vista Gold Corp. (TSX: VGZ)
Vista Gold is a gold project developer. The company’s flagship asset is the Mt. Todd gold project in Northern Territory, Australia. World-class size in a tier 1 location, advanced permitting and technical innovation at Mt. Todd, together with the strength of the company’s balance sheet, set Vista Gold apart among its peers.
Over the last year, Vista Gold announced positive results for its updated 2019 preliminary feasibility study for its Mt. Todd gold project. The study estimates average annual production of 495,000 oz of gold years one through five with an all-in sustainable cost of USD$688/oz.
In June 2020, the company announced positive results of ongoing geological evaluations at its Mt. Todd project. This initial phase of the company’s evaluations focused on the Batman deposit and the area north to the Quigleys deposit. Results demonstrate greater potential for continuity of gold mineralization along a 5.4 km strike length.
In terms of ongoing work, Vista Gold continues to advance and de-risk Mt. Todd and is well-positioned in the current gold environment to consider prospective development partners who Vista believes will recognize the value of Mt. Todd and appropriately reward shareholders.
Fosterville South Exploration (TSXV: FSX)
Fosterville South Exploration is engaged in the acquisition and exploration of epizonal orogenic gold deposits in the State of Victoria, Australia. The company owns a 100 per cent interest in the Lauriston Gold Project and the Golden Mountain Project.
The past year for Fosterville has been exceptionally important. During 2020, after a multi-year land assembly process led by Fosterville South COO and Co-Founder Rex Motton, the company went public on the TSX Venture Exchange this year. Fosterville also commenced drilling at the Golden Mountain project, where they have had excellent drill results to date.
The company currently has $28.5 million in cash, is drilling at Golden Mountain where results to date have been excellent and is also preparing to drill at Lauriston in the short-term. Bryan Slusarchuk, President and CEO of Fosterville, notes, “Fosterville’s premier land package consists of almost 4,000 sq km of highly prospective tenements and exploration applications and we were able to get a big head start in the region due to Rex Motton, our COO.”
He adds, “We will continue to drill at Golden Mountain where mineralization is open along strike and at depth and have also submitted drill permit applications on multiple other projects.”
“We have strong institutional backing, an excellent treasury, the premier exploration land package in the region and are keen to accelerate on all fronts as we finish out 2020 and enter 2021.”
Copper Mountain Mining Corporation (TSX: CMMC)
Copper Mountain Mining is a copper producer, developer and explorer in world-class mining jurisdictions. The company’s flagship asset is the 75 per cent owned Copper Mountain mine located in southern British Columbia near the town of Princeton. The company also has the development stage Eva Copper Project in Queensland, Australia, which is expected to add approximately 106 million pounds of copper equivalent to the company on an annual basis and an extensive 397,000 ha to the highly prospective land package in the Mount Isa area.
Despite the pandemic, the company is exceeding its operating plan at the Copper Mountain Mine with all-in costs below USD$2 per pound and is generating healthy cash flow. They also published an updated feasibility study at its Eva Copper Project in Queensland, Australia that improved metrics across the board and demonstrated what a scarce and valuable asset Eva is. For reference, the project is expected to produce an average of 100 million pounds of copper annually over a 15-year mine life at below median cash costs.
In addition, the company has the most copper leverage when compared to other copper companies on the TSX. What further differentiates them from peers is that they also have the most leverage to gold and silver when compared to other copper companies.
With regard to upcoming plans, Copper Mountain is evaluating a further mill expansion to 65,000 tonnes per day. The company plans on publishing a technical report on this new plan in the fourth quarter of 2020 and expects this study to continue to illustrate the immense potential the Copper Mountain Mine provides.
OceanaGold Corporation (TSX: OGC)
OceanaGold is a multinational gold producer committed to the highest standards of technical, environmental and social performance. For 30 years, the company has been contributing to excellence in the industry by delivering sustainable environmental and social outcomes for its communities and strong returns for its shareholders.
The company’s global exploration, development, and operating experience have created a significant pipeline of organic growth opportunities and a portfolio of established operating assets including the Didipio Mine in the Philippines; Macraes and Waihi operations in New Zealand; and the Haile Gold Mine in the U.S.
The company recently reported its financial and operational results for the quarter ended September 30, 2020. Highlights include but are not limited to:
- Total recordable injury frequency rate of 2.9 per million hours worked compared to 2.7 per million hours worked at the end of the second quarter of 2020
- Year-to-date 2020 consolidated production of 202,521 oz of gold at all-in sustaining costs of $1,367/oz on sales of 214,133 oz of gold
- Consolidated third quarter gold production of 63,136 oz at the all-in sustaining cost of $1,695/oz on sales of 60,790 oz of gold
- Year-to-date revenue of $331.9 million with earnings before interest, depreciation and amortization
There’s never been a better time to invest in mining
There are numerous trends that investors should look out for within the mining sector, especially when M&A activity is heating up. According to data from S&P Global Market Intelligence, “In the first half of 2020, the market has seen an aggregate of USD$3.9 billion in gold transactions—in eight deals representing approximately 31.9 million oz of gold reserves—with an average price of USD$123/oz.”
This growth will be heavily discussed during the TSX Australia Mining Investor Day event, including how investors can get involved with the presenting companies.
If you are an investor looking to add resource stocks to your portfolio, register for this event to get more information.
For more information about TMX Group, visit their website at www.tmx.com
Make sure to follow TMX Group on social media: