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(Kitco News) - Gold and the precious metals market continue to play an essential role in attracting capital to the resource space; however, the scales are shifting more in favor of critical metals and minerals, according to Canadian Securities Exchange.
During the 2023 CIM conference and expo, in an interview with Kitco News, Anil Mall, director, Listed Company Services at the CSE, said that in the first quarter of this year, 30 companies were added to the exchange, of those 22 were in the mineral resource space.
Adding to the exchange's growing success, Mall said that the CSE has seen eight Initial Public Offerings in the first quarter; this comes after leading all Canadian-based IPO activity in 2022.
Looking at market financing, Mall said that so far this year, CSE-listed companies have raised about $166 million.
"If the market is any indication right now, um, you know, there's a healthy interest in listing and funding mineral exploration companies," Mall said.
While most of the new listings to the exchange are for critical metal companies, Mall noted that the largest mining company on the CSE is a gold miner.
Mall noted that it's not surprising that a lot of money is flowing into the critical metals space. The growing demand for electric cars and the green energy transition are driving solid demand for critical metals.
Another trend Mall said that the CSE is watching is that the critical resource sector is attracting younger investors. He explained that this is not surprising as younger investors understand the need for critical metals and have a strong belief in the sector.
Looking ahead, Mall said that the CSE is securing its future by creating a new Senior Tier for its larger and more advanced issuers.
"The theory behind us adding the senior tier is so that companies that as they grow, don't need to then move over to another exchange to be then able to get the benefits that a larger company might get like accessing institutional capital," he said.
