Sources available to offer insight on Q3 Canadian Mining Eye
TORONTO, Nov. 7, 2013 /CNW/ - Canadian mining equities witnessed a
slight improvement in performance during the third quarter, but
cautious investor sentiment remains, according to EY's Canadian Mining Eye: Q3 2013.
The index — which tracks Canadian mining sector performance of 100 TSX
and TSXV mid-tier and junior companies with market capitalizations
between $1.4b and $55m in Q3 — increased 5% in the third quarter, but
has fallen 50% in the past 12 months.
Despite moderate improvement, the near-term performance of the sector
remains unclear — especially with an uncertain outlook for metal prices
reducing investor interest.
Mining companies are continuing to respond to softer prices by trimming
their input costs and rationalizing their asset portfolios. Yet
managing cost remains very challenging for majors and mid-tier
Many looked to joint ventures to manage cost, optimize assets and drive
operational efficiency in the face of restricted access to capital,
cost pressure and cash burn in Q3. Companies are now also turning to
the following cost management efforts:
Cease or delay of expenditures
Alternative financing options
Non-core asset disposals
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SOURCE: EY (Ernst & Young)
For further information:
EY's Canadian Mining & Metals team is available to offer insight into the report's findings. To reach a spokesperson, or for more info, please contact:
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