Mar. 7, 2020


Dean McPherson

Ecuador

Dean McPherson

Head of Global Mining, Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV)

“Our expectation is that Latin America will play an even larger role in our markets going forward.”

BIO

Dean McPherson is head of global mining for the TMX Group. He is responsible for the development and execution of the global strategy for attracting new listings in the mining sector to the Toronto Stock Exchange and TSX Venture Exchange. Prior to the TMX, McPherson worked as an investment banker. Before joining the capital markets, he worked as a civil engineer, managing capital projects for Alcoa's bauxite/alumina operations in Jamaica and Fluor in Canada. In addition to an undergraduate honors degree in civil engineering, he earned an MBA from the Schulich School of Business and is a CFA Charterholder.


What opportunities do you see in Latin America, specifically Ecuador, for the mining sector and the exchange?

The recent social uprisings across Latin America highlight how important sustainable economic growth is for this region. The good news is that the natural resources of the region are undoubted. Governments across the region have a responsibility to explore these opportunities to drive economic growth. The Ecuadorian government has made it clear it intends to pursue policies and initiatives to increase mining's proportion of GDP. In 2018, we went to Ecuador and left with renewed confidence in the government's commitment to growing the mining sector. Latin America remains the largest jurisdiction for TSX and TSXV outside of North America. Currently, the region represents approximately onefifth of properties in our markets. This shows that the region is not only familiar to our issuers but favored by the global investors who participate in our markets. Moving forward, mining will play an even bigger role in the economic growth of the region, especially within the parameters of the responsible Mining 2.0 framework, embodying environmental, social, and governance (ESG) initiatives.

Ecuador has a goal of doubling the value of its mining industry by 2021. What role do you see TSX playing to facilitate the necessary investment to realize this?

We welcome this news and will continue to assist our issuers in the region to highlight the development of projects, as well as the progress made in building social acceptance and promoting responsible mining in the region. As the leading global equity market for mining, we play a central role in the growth of the mining
sector in Ecuador. We will continue to collaborate with government and industry organizations to bring transparency and information to potential investors. This is a cornerstone in building investor confidence and attracting investments.

Ecuador's mining sector reached a few important milestones in 2019, such as Lundin Gold (TSX:LUG) being granted the final two permits required to move the Fruta Del Norte project into production. How do you see such developments impacting the attractiveness of Ecuador's mining sector to the global investor community?

Lundin Gold's success in Ecuador continues to play a key role in the country's efforts to attract mining investors. Transparency and consistency in policies is vital to build investor confidence. Investors take note, and this influences investment decisions. This is not to say investors do not expect opposition and challenges. The challenges in mining are often of a global nature. The concept of social license is perhaps no more relevant in any other sector. Lundin Gold and SolGold are the larger examples where the Ecuadorian government demonstrated a consistent and transparent judicial and regulatory system that gives all stakeholders a voice and companies a fair resolution process. There have been historical challenges; however, the recent trend in Ecuador is a blueprint for the region to attract mining investment. If this consistency can continue across government changes, the future is bright for mining in Ecuador.

What is the TSX's current strategy regarding further collaboration and possibly dual listing with the Quito Stock Exchange?

We do not currently have a formal arrangement with the Quito Stock Exchange. We are, however, committed to exploring all potential opportunities to expand the pool of capital available to our issuers. The Quito Stock Exchange may be an important vehicle for this strategy. We have started discussions to explore how we can work together and intend to continue exploring these opportunities.

What are TSX/TSXV's goals and targets regarding the mining sector in Latin America for 2020?

Our expectation is that Latin America will play an even larger role in our markets going forward. Our commitment to the region is demonstrated by hiring representation in the region. Earlier in 2019, Guillaume Legare joined our team as Latin America regional head and is based full time in Lima.

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