In an effort to get approval for its acquisition of Fission Uranium Corp（TSX:FCU） and to expand its shareholder base, Australian uranium producer Paladin Energy plans to list on the Toronto Stock Exchange (TSX). This will mark the first major foreign mining company to list in Canada since 2022.
This June, Paladin Energy entered into a CAD 1.14 billion (USD 830 million) acquisition agreement with TSX-listed uranium mining company Fission Uranium. The transaction is expected to be completed by August. Paladin’s CEO Ian Purdy stated that their listing in Toronto will provide investors with an alternative to Cameco Corp (TSX:CCO) and expressed optimism that the company’s market cap could rise from its current AUD 3.6 billion (USD 2.4 billion) to over USD 5 billion.
Dean McPherson, global head of mining and business development for TSX and TSX-Venture, described Paladin’s listing as a significant success for them, emphasizing that it could help revitalize mining financing in Canada’s capital markets. To attract other Australian mining companies, especially those involved in uranium and yet to be listed, he plans another trip to the country in October. He suggested that American mining companies and other ASX-listed firms should follow Paladin’s lead and come to Toronto. He even encouraged Kazakhstan’s state-owned uranium mining company, Kazatomprom, to consider listing in Canada.
In recent years, technology stocks have become market favorites, leaving oil, gas, mining, and banking sectors behind, despite these sectors making up nearly two-thirds of the TSX. Besides, the number of foreign company listings on the entire Canadian securities market has also decreased yearly, from 24 in 2022 to 14 in 2023. By 2024, only two Australian small-cap stocks, AuMega Metals Ltd (TSXV:AUM) in June on the Venture Exchange, and Paladin, have been listed.
Focusing on mining. In October 2020, Australia’s Newcrest Mining Ltd (TSX:NCM), achieved dual listing on the ASX and TSX. In December 2022, Chile’s Aclara Resources Inc. (TSX:ARA) completed an IPO on TSX. Since then, no foreign mining company has IPOed or been listed in Canada.
Canada is one of the world’s most resource-rich countries, boasting political stability, well-established mining laws and policies, and globally leading mining technology and services, providing an international investment environment for mining companies worldwide.
Regarding capital market support, data from 2022 shows that Canada’s two major exchanges, TSX and TSX Venture Exchange, host 43% of the world’s listed mining companies, facilitating more than half of global mining sector financings since 2016. Toronto is home to dozens of major mining companies, including Nutrien Ltd (TSX:NTR) and Barrick Gold (TSX:ABX), with the materials sector comprising 12% of the S&P/TSX Composite Index.
However, recent actions by the Canadian government have not been particularly investment-friendly for the mining sector. Earlier this month, the federal government announced tighter national security reviews of foreign investments in Canada’s mining industry, particularly those involving critical mineral businesses. In 2021, Canada’s Department of Natural Resources published a list of 31 critical minerals, including uranium.
