JOHANNESBURG (miningweekly.com) – Higher commodity prices have contributed to a 26% rise in EY’s Canadian Mining Eye index for the first quarter of this year.
“Improved gold and base metals prices appeared to generate much-needed positive momentum in the sector. The strong growth of Canadian mining equities also indicates benefits from strategic initiatives on noncore asset sales, aggressive cost control measures and a disciplined approach in reducing debt,” said EY Canadian Mining & Metals leader Bruce Sprague.
EY pointed out that the gold price had improved by 16% in the first quarter, compared with a 5% decrease in the third and fourth quarters of last year. Copper prices improved 4% in the first quarter, while zinc prices were up 14% in the first quarter.
EY stated that the index showed that miners were looking for strategic partners and innovative financing solutions to fund growth.
“As markets anticipate more of the positive environment over the next few quarters, we are likely to see a turnaround of fortunes for companies. At the other end of the spectrum, challenging global market conditions remain, so some caution is warranted,” said EY Canadian Mining & Metals transaction leader Jay Patel.