There’s been little, if any, good news for the Canadian mining industry in 2013. Costly write-downs and volatile commodity prices have plagued the beleaguered sector for the past 12 months.
That worrisome economic landscape is, once again, highlighted in EY’s Canadian Mining Eye Q4 2013 report, released February 6.
According to the report, the value of EY’s Canadian mining index — a group of 100 mining companies listed on either the Toronto Stock Exchange or the TSX Venture Exchange – dropped 45% in 2013.
In the fourth quarter of 2013, EY’s mining index was down 9%, well below the S&P/TSX Composite Index, which dropped 7% in Q4 2013.
The market capitalization of the index’s companies — which range between $100 million and $1.6 billion — was down 55%.
Money raised in the market in 2013 was $6.9 billion, down 49% from 2012.
The index did, however, boast some well-performing companies.
Lucara Diamonds’ (TSX:LUC) share price rose 66%, the most of any company tracked.
Vancouver’s Imperial Metals Corp. (TSX:III) increased its stock price 29% in Q4, bolstered by earnings of $14.7 million in Q3.
Among the companies that struggled in Q4 were Colossus Minerals (TSX:CSI), whose share price dropped 91%, and Perseus Mining, whose share price fell 55%.
There were, cumulatively, 16 new companies listed on the TSX and TSX-V exchanges in Q4.
Burnaby’s West Point Resources Inc. (TSX-V:WPO) joined the Venture exchange in December after raising $791,000 to explore its Ruby Range project in the Yukon.
Vancouver-based Savoy Ventures Inc. (TSX-V:SVO) joined the Venture exchange in October after completing its initial public offering.
Notable market exits included Rainy River Resources Inc., which delisted in October after it was purchased for $310 million by Vancouver mid-tier producer New Gold Inc. (TSX:NGD).
Noteworthy fundraising announcements in Q4 were Platinum Group Metals (TSX:PTM) raising $175.2 million and Copper Mountain Mining (TSX:CUM) raising $30 million, through a secondary offering.
The companies tracked as part of EY’s mining eye index do not have to be based in Canada, just listed on the Canadian exchanges.
