Rough ride in first half of 2013 for mining & metals firms

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.

Read: Top 10 risks for mining and metals firms

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.

Read the full report here.

Also read:

Most mining issuers aren’t disclosing properly: OSC

Mining firms focus on cost control, execution in 2013

M&A appetite wanes for mining and metals firms

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.