Drop in gold price sharpens decline in TSX and TSXV listings: EY Q2 Canadian Mining Eye

Sources available to offer insight on Q2 Canadian mining and metals trends

  • Share

(Toronto, 6 August 2013) Headwinds felt by Canadian mining and metals companies in the first quarter of the year continued in Q2 with the TSX and TSXV closing with a 34% decline — a drop exacerbated by ongoing uncertainty around the price of gold, according to EY’s Canadian Mining Eye: Q2 2013.

The index — which tracks Canadian mining sector performance of 100 TSX and TSXV mid-tier and junior companies with market capitalizations broadly falling between CDN$1.6b and $75m — details how growing concerns around gold prices are translating into a challenging market, particularly for access to capital, as investors become more risk averse.

The report describes how these companies are addressing challenges by focusing on streamlined operations, efficient cost management and capital management practices, including the disposal of non-core assets. Many companies are also pursuing creative financing options by seeking out opportunities in debt markets and attracting private investors with a long-term perspective on the sector.

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 a member of our national PR team.

- 30 -

About EY
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 our communities.

For more information, please visit ey.com/ca.

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.