Institutional investment trends in the mining industry have been changing over the past few years, with a contraction of interest from institutional investors. CPM Group conducted a study in 2019 that looked at institutional shareholding patterns for 13 Canadian mining companies with market caps of over $50 million and conducted interviews with 16 fund managers at asset management groups to explore attitudes toward mining investments. Our findings show that the mining industry is facing a divorce between capital formation for companies and equity markets due to broader structural changes in the buy-side and sell-side of the financial markets.
One important thing mining companies should focus on to increase interest from institutional investors is focus profitability and identify investors who are still interested in investing on a company by company basis, such as specialist funds, private equity, family offices, and high net worth individuals.