Little optimism for Canadian mining equities in Ernst & Young report
Canadian mining equities fared poorly in Ernst & Young's most recent Canadian Mining Eye report, with the index plummeting 13% in Q1 2013, and 33% in the past 12 months.
The plunge follows a 17% drop in the forth quarter last year and 22% during 2012.
The index's fall is highlighted by the concurrent rise on the S&P/TSX Composite index, which gained 3% in the first quarter.
The quarterly report, which follows 100 TSX and TSXV mid-tier and junior companies with market capitalizations, cited the global economy as the driving force behind falling commodity prices.
Despite the weak performance, the professional service firm sees opportunities in "creative financing arrangements" undertaken by some juniors, such as consolidations between cash and property holders. Likewise, capital optimization and tighter purse strings among the majors are expected to help keep them in the black.
The biggest losers this quarter, according to the report, were San Gold, Rainy River Resources, General Moly and Mirabela Nickel’s, whose share prices each dropped at least 40%.
The plunge follows a 17% drop in the forth quarter last year and 22% during 2012.
The index's fall is highlighted by the concurrent rise on the S&P/TSX Composite index, which gained 3% in the first quarter.
The quarterly report, which follows 100 TSX and TSXV mid-tier and junior companies with market capitalizations, cited the global economy as the driving force behind falling commodity prices.
Despite the weak performance, the professional service firm sees opportunities in "creative financing arrangements" undertaken by some juniors, such as consolidations between cash and property holders. Likewise, capital optimization and tighter purse strings among the majors are expected to help keep them in the black.
The biggest losers this quarter, according to the report, were San Gold, Rainy River Resources, General Moly and Mirabela Nickel’s, whose share prices each dropped at least 40%.
0 opmerkings:
Plaas 'n opmerking