Press release

22 Oct. 2020 Toronto, CA

EY Canadian Mining Eye index sees continued growth in Q3 2020

The EY Canadian Mining Eye index saw continued growth in Q3 2020, up 10% following a 72% increase in the previous quarter.

Press contact
Victoria McQueen

EY Canada Specialist, Public Relations

Supporting the development and distribution of external communications and social media across Canada. Can be found by the lake in the summer and on the slopes in the winter.

Related topics Mining and metals

Sources available to discuss quarterly mining and metals industry performance and outlook

  • Gold prices increase despite volatility
  • Base metals prices continue upward momentum from Chinese demand
  • CEO Q&A with Torex Gold and Barrick Gold on building resiliency in COVID‑19  

The EY Canadian Mining Eye index saw continued growth in Q3 2020, up 10% following a 72% increase in the previous quarter.

Index comparisons Q3 2020 Q2 2020
Canadian Mining Eye index 10% 72%
S&P/TSX Composite Metals and Mining index 4%
16%
Major index 6% 44%

Despite experiencing volatility, gold prices increased 7% in Q3 after an 11% gain in Q2 2020. Base metals prices also continued their growth momentum on the back of strong demand from China. Copper prices increased 11% after 22% growth in the previous quarter. Nickel prices saw an uptick of 14%, while zinc prices increased 17%.

“Moderate economic recovery over the summer months, coupled with movements in the US dollar, impacted the demand for gold,” says Jay Patel, EY Canada Mining & Metals Strategy and Transactions Leader. “A switch back to higher prices is on the horizon as we enter the second wave of COVID-19 and a renewed upswing in demand as fears mount over increasing cases and investors turn to a safe haven for investments.”

The EY Top 10 business risks and opportunities — 2021 finds that the pandemic has affected each commodity differently depending on demand, stockpiles and the virus’s impact on supply, heightening many existing risks but also creating new opportunities. License to operate is ranked as the top risk, along with high-impact risks (2) and productivity and rising costs (3).

“Mining and metals companies have handled the impact of this ongoing disruption extremely well,” says Jeff Swinoga, EY Canada Mining & Metals Co-Leader. “They’re maintaining a strong focus on health and safety, enhancing governance and change management practices, collaborating with various stakeholders and building more efficient operations. Continuing this success moving forward will require flexibility, resiliency and agility.”

Special section – Q&A with industry CEOs

Judy Kuzenko, President & CEO at Torex Gold Resources Inc., talks about the importance of fostering a strong workplace culture that can withstand any crisis, deliver on long-term goals and build a socially responsible organization.

Mark Bristow, President & CEO at Barrick Gold, explores current challenges and opportunities facing the mining sector, license to operate and building resiliency in the era of COVID‑19.

– 30 –

About EY

EY exists to build a better working world, helping create long-term value for clients, people and society and build trust in the capital markets. Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate. Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today.

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. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EY member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com.  Follow us on Twitter @EYCanada.