Sources available to offer insight on most recent mining and metals results
TORONTO, Dec. 14, 2015 /CNW/ - The Canadian Mining Eye index declined 17% during Q3 2015, which is a stark contrast to Q2 which saw a 4% gain. This latest drop was even more substantial than Q1 which saw just a 1% decline.
"Canadian mining equities continue to face downward pressure due to a fall in metal prices, weak macro-economic backdrop and weak Chinese demand," says Bruce Sprague, EY's Canadian Mining & Metals Leader. "But, with the US dollar strengthening against the Canadian dollar, Canadian miners are expected to benefit as commodities are traded in US dollars whereas production costs are incurred in Canadian dollars."
The Canadian Mining Eye: Q3 2015 highlights the significant concerns companies are dealing with that have contributed to a further plunge in Q3 2015 prices, including:
- Gold was hit by lower imports by India, dropping 52% in September after a surge to meet festival demand in August.
- With economic pressures in Europe, the US and China, the pressure on gold was strong.
- In response to an economic slowdown in China, metals prices tumbled; copper was down 10%, nickel 13%, and zinc 16%.
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$2.1b and CDN$160m.
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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: Leigh Kjekstad, [email protected], 604 648 3807; Sasha Anopina, [email protected], 416 943 2637; Julie Fournier, [email protected], 514 874 4308