“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.