Commodities_Gold

Four Canadian-based mining companies rank among the five largest metal streaming/royalty businesses in the world, reveals a PwC mining report. Those companies are:

  • Franco-Nevada,
  • Silver Wheaton,
  • Osisko Gold Royalties and
  • Sandstorm.

Read: Gold poised for growth

“These financial innovators were recently trading at an average price-to-net-asset value of 1.3x, compared with a value of 1.0x for members of the top-40 [global mining companies],” says the report. “Alternative financing companies […] to take advantage of this valuation gap to purchase royalties and metal streams at a substantial premium to the market, creating a win-win, especially during market downturns.”

The report also finds that exploration dollars poured into Canada at a faster rate than anywhere else in the world in 2016. Canada attracted 14% of the total global exploration budget; Australia was second with 13%, followed by the United States (7%).

Further, Canadian companies’ rising valuations kept pace with those of their international counterparts, with six Canadian-based miners making the global top 40:

  • Barrick Gold Corp.,
  • Potash Corp.,
  • Goldcorp Inc.,
  • Teck Resources Ltd.,
  • Agnico Eagle Mines Ltd. and
  • First Quantum Minerals Ltd.

The top 40 companies had a 46% increase in overall market capitalization.

Read the full report.

Also read:

Hits and misses in the energy sector

2017 on track for record M&A

Originally published on Advisor.ca
Add a comment

Have your say on this topic! Comments are moderated and may be edited or removed by
site admin as per our Comment Policy. Thanks!