Sources available to offer insight on fourth quarter and year-end
TORONTO, Feb. 6, 2014 /CNW/ - Canadian mining equities witnessed a 45%
decrease in market capitalization over the course of 2013, according to
EY's Canadian Mining Eye: Q4 2013.
The index decreased 9% in Q4 alone as concerns around global economic
growth and uncertainty surrounding the Federal Reserve stimulus program
Declining metal prices also spurred significant write-downs in the value
of assets across the sector. Companies were reluctant to raise equity
capital on dilutive terms and witnessed less capital readily available
in a soft market. Total proceeds raised were approximately $6.9b, down
49% compared to the same period in 2012.
Though these market forces are already setting the stage for a modest
year of transaction activity, growth opportunities continue to exist
for companies across the sector. In 2014, expect:
Majors to continue disposing of non-core assets
Mid-tiers with cash flexibility to take advantage of inorganic growth
Juniors with good quality assets and de-risked projects to attract buyer
The Canadian Mining Eye index tracks Canadian mining sector performance
of 100 TSX and TSXV mid-tier and junior companies with market
capitalizations between $1.6b and $100m.
EY is a global leader in assurance, tax, transaction and advisory
services. The insights and quality services we deliver help build trust
and confidence in the capital markets and in economies the world over.
We develop outstanding leaders who team to deliver on our promises to
all of our stakeholders. In so doing, we play a critical role in
building a better working world for our people, for our clients and for
EY is proudly celebrating 150 years in Canada. For more information,
please visit ey.com/ca. Follow us on Twitter @EYCanada.
EY refers to the global organization and may refer to one or more of the
member firms of Ernst & Young Global Limited, each of which is a
separate legal entity. Ernst & Young Global Limited, a UK company
limited by guarantee, does not provide services to clients. For more
information about our organization, please visit ey.com.
SOURCE: EY (Ernst & Young)
For further information:
EY's Canadian Mining and Metals team is available to offer insight into the report's findings. To reach a spokesperson, or for more info, please contact:
416 943 5497
604 648 3607
514 874 4308