Canadian Mining Eye outperforms global indices in Q2: EY

Sources available to offer insight on Q2 2014 mining and metals results

TORONTO, Aug. 12, 2014 /CNW/ - Canadian mining equities continued to show improvement during Q2 2014, strengthened by an increase in metals prices, according to EY's latest Canadian Mining Eye.

The index gained 9% during Q2 2014 and outperformed the S&P/TSX Composite index, which gained 6%, and the London Metal Exchange index, which gained 7% during the second quarter.

"The second quarter proved mining equities are capable of sustainable improvement," says Bruce Sprague, EY's Canadian Mining & Metals Leader. "Overall, we anticipate the third quarter to continue to show positive trends with mixed expectation on metal prices."

The Canadian Mining Eye: Q2 2014 also digs into the following topics:

  • Mergers and acquisitions: though deal appetite remained subdued early in the second quarter, mining companies continue to view asset disposal both as a means of raising funds and prioritizing limited resources to core projects.

  • Spotlight on diamonds: polished diamond prices increased 4.5% in the first half of 2014 with further upside expected in the second half of the year as a result of increasing diamond prices, potential growth in demand, recent transactions and availability of financing.

The Canadian Mining Eye tracks Canadian mining sector performance of 100 TSX and TSXV mid-tier and junior companies with market capitalizations at the end, broadly falling between CDN$2.0b and CDN$100m.

EY's Canadian Mining & Metals team is available to offer insight into the report's findings.

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SOURCE EY (Ernst & Young)

For further information: Erika Bennett, erika.bennett@ca.ey.com, 416 943 5497; Sarah Shields, sarah.j.shields@ca.ey.com, 604 648 3607; Julie Fournier, julie.fournier@ca.ey.com, 514 874 4308