Can you introduce OTC Markets Group?

OTC Markets Group provides critical market infrastructure to the US financial markets through a platform where the largest US trading firms quote more than 12,500 securities. There are two types of companies trading on our markets; domestic companies and international ones looking to access US investors. In the first category, many are small and early stage. The second type wants to efficiently target both institutional and retail investors in the US market—which are critical in the mining space—and for those companies, we provide a global gateway to maximize access to US investors. Being public here while you are already listed on a qualified foreign exchange offers a lower cost and less complex alternative to maintaining two stock exchange listings, all while adhering to regulatory standards set forth by the SEC and FINRA.

More than 2,000 mining companies are trading on our markets, including large companies such as Anglo American and Fortescue Metals. Just this year, more than 180 mining companies joined our premium markets, such as Lundin Gold, with about US$2.5 billion in market cap.

How did the mining firms in your market perform in 2022?

A lot of the commodity prices that soared in 2021 came down in 2022. 2021 marked a record number of companies joining our market across multiple industries, with the highest trading volumes that we had seen (over US$700 billion).

What are the key factors driving investment in mining firms?

ESG is key in terms of opportunities for companies. The green energy transition requires innovation and emerging technology to reduce carbon and minimize waste. How mining companies position themselves on ESG will contribute to investment attractiveness. We have seen this in Canada with several junior miners recently changing their names to match a new focus on a particular metal. These businesses are rethinking how demand for green and critical metals or minerals can generate a competitive advantage. We have seen larger companies pivot parts of their business to now include these commodities, but they're also moving away from oil and coal.

What is your view of the trends in junior mining investment?

We need more investment in mining. From an initial feasibility study to nominal production can often take more than a decade. More mines are needed by 2030 to meet global net carbon emission goals. Trading on OTC markets allows companies to raise the money that is needed to invest in these projects.

Many small companies, which represent up to US$2 billion in US market cap, are not knocking on the door of larger institutions. The companies are reliant on retail investors, and we help those companies to be as aggressive as possible in accessing US investors.

In which areas do you think capital flows are going in 2023?

Longer-term, there will be a need for sustainability and diversification through accessing new revenue streams from mining companies repurposing new and historical mine waste. This sends a strong message to a broader audience of investors, private and specialists alike. In the mining space, innovation and learning from other industries will likely lead to both cost savings and further efficiencies, which will attract broader interest from investors. It will also be necessary to embrace emerging technologies, such as data analytics, to automate operations, reduce energy consumption, and optimize machinery speed.

We see Nevada, Arizona, Western Australia, Saskatchewan, and Alaska as being very attractive places for investment in the future.

What will be the OTC Markets Group’s key priorities in the coming months?

OTC Markets Group acquired EDGAR Online Inc., a premium supplier of real-time SEC regulatory data and financial analytics, from Donnelley Financial, LLC. The acquisition allows us to combine corporate disclosure databases with our market data to drive market transparency, operational efficiency and regulatory compliance.

Integrating this data into our platform will be a priority over the next few months so we can provide investors, traders and compliance teams with a more comprehensive view of an issuer and its securities. Our expanded data offering will now cover the full US public company disclosure dataset, including SEC Reporting, Bank Reporting, and OTCM’s Disclosure and News Service.