Save Canadian Mining

The Fight to Save Canadian Mining ??

A Call to Action

"Show me a people without mines, and I will show you a people deep in the mire of poverty and a thousand years behind the procession of civilization." – Governor of New York State, William Sulzer, 1913.

Mining has been the backbone of civilizations for millennia, fueling their growth, prosperity, and technological advancement. From ancient Egypt and Rome to modern powerhouses like the U.S. and Canada, the mining industry has driven economic development and innovation. In Canada today, mining continues to create high-paying jobs, strengthen communities, and generate billions of dollars in economic activity. Indigenous peoples, including First Nations, make up a significant portion of the workforce, approximately 15% of mining jobs, demonstrating the industry’s importance in fostering economic independence and inclusivity.

However, despite the industry's vital contributions, Canada's mining sector faces an existential threat: predatory naked short selling and a broken regulatory system that have left small-cap mining companies struggling to survive.

The Problem with Mining in Canada

Chart 1

The TSX Venture Exchange Index the Precious Metal dominated Index once traded at a premium to the gold price, but no longer.

Naked Short Selling: One of the biggest challenges facing small-cap mining companies in Canada is illegal naked short selling. Unlike legitimate short selling, which involves borrowing shares, naked short selling allows traders to sell shares they do not own or borrow. This practice artificially drives down stock prices, devastating companies by cutting off access to capital—critical for exploration and development. It is estimated the 4 times the number of outstanding shares in junior mining companies are shorted.

Over time, this predatory practice has wiped out billions, potentially trillions, in market value, destroying companies that are essential to the Canadian economy. Save Canadian Mining, an advocacy group founded and led by Terry Lynch and backed by industry giants like Eric Sprott, Rob McEwen, Sean Rosen, Keith Neumeyer and many others, are working tirelessly to end this practice and bring integrity back to Canada’s capital markets.

Collapse of Canadian Capital Markets: The damage caused by naked short selling has been especially devastating to companies listed on the TSX Venture Exchange (TSXV), where mining firms rely on raising funds for exploration. As a result, capital markets that were once the lifeblood of Canadian innovation and growth have collapsed, leaving small-cap companies in a difficult position to finance their operations, create jobs, and contribute to national growth.

Permitting Delays: Even as technology like AI promises to speed up mining exploration and development, the Canadian mining sector faces another bottleneck is slow permitting times. Lengthy delays in project approvals further inhibit mining companies from advancing crucial projects that could supply the minerals the world desperately needs for everything from power generation to food production.

What Needs to be Done to Save Mining in Canada

Regulatory Action: Save Canadian Mining’s core mission is to push for immediate regulatory action to eliminate naked short selling in Canada. By implementing more stringent rules like those in South Korea, where naked short selling is banned, the Canadian government can protect small-cap mining companies and restore integrity to the capital markets.

Awareness and Advocacy:

The battle to end predatory short selling won’t be won by regulatory bodies alone. Save Canadian Mining is actively engaging the public, small-cap companies, shareholders, and industry vendors through investigations, reports, and lobbying efforts to bring attention to this critical issue. But advocacy alone isn't enough either, now is the time for stakeholders to come together and demand change.

Class Action Lawsuit:

As part of their strategy, Save Canadian Mining is preparing a class-action lawsuit that involves hundreds of companies, seeking justice for the financial devastation caused by naked short selling. This lawsuit aims to hold bad actors accountable and force regulators and financial institutions to act.

Social Media and Public Pressure:

Save Canadian Mining is also leveraging the power of social media to embarrass those responsible for allowing these practices to continue—banks, regulators, and politicians. The goal is to create a groundswell of public support that will force decision-makers to act. In today's digital age, public pressure through platforms like Twitter and LinkedIn can move mountains and we need to rally support now before it’s too late.

How Long Save Canadian Mining Has Been Fighting

Save Canadian Mining was founded by Terry Lynch several years ago and has been steadily gaining support from influential industry figures like Eric Sprott, Keith Neumeyer, and Robert McEwen. Despite the organization’s persistent efforts, little meaningful action has been taken by Canadian regulators, leaving the onus on industry participants and the public to demand change.

Permitting and the Future of Mining

As the world shifts towards a greener future, the demand for minerals and metals has skyrocketed, with AI and automation speeding up the process of exploration and safer more environmentally friendly extraction. But Canada’s outdated permitting system remains a significant roadblock. Despite having abundant natural resources and a skilled workforce, Canadian mining companies face unnecessary delays that inhibit their ability to meet global demand for critical minerals.

Government Apathy and the Need for Public Engagement

Despite acknowledging the problem, Canadian regulators and politicians have done little to address the issues plaguing the mining sector, including naked short selling and permitting delays. For Canada to retain its position as a global mining leader, the government must prioritize reforms to protect its capital markets and allow the industry to flourish.

The success of this movement will require active participation from small-cap companies, their shareholders, and vendors. Together, we can push the government to prioritize mining reforms and put an end to predatory financial practices that threaten Canada's future prosperity.

Conclusion: A Call to Action

Mining is more than just an industry, it’s the lifeblood of the world’s economy. It powers our homes, fuels our factories, and supports our food systems. Yet, in Canada, the industry is under siege, facing unfair market practices and stifling bureaucratic delays.

Now is the time to act. Save Canadian Mining has already laid the groundwork, but it’s up to all of us, industry leaders, workers, shareholders, and everyday citizens, to ensure that Canadian mining thrives.

Join Save Canadian Mining today, help us fight for fair markets, and secure the future of an industry that is vital to the world.

For more information, visit www.savecanadianmining.com.

John Newell? John's LinkedIn

"Mining creates high-paying jobs, strengthens communities, and contributes billions to our economy. It fosters economic independence and helps sustain a high standard of living for all Canadians. Notably, approximately 20% of jobs in the mining industry are held by Indigenous peoples, including First Nations, who play a key role in this vital sector. With today’s advanced technologies, we are able to pursue mining more responsibly than ever before, ensuring that development aligns with strong environmental stewardship."

John Newell September 13, 2024

Written September 19, 2024

RSD Discovery Group www.rsddiscoverygroup.com