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Finding opportunities as headwinds continue
The Canadian Mining Eye tracks Canadian mining sector performance of 100 TSX and TSXV mid-tier and junior companies with Q2 2013 market capitalizations broadly falling between CDN$1.6b and CDN$75m. These companies trade on the TSX and TSXV, though some of them are headquartered outside Canada. Movements and analysis of the index are reported quarterly.
To receive copies of the Canadian Mining Eye, please contact Stephanie Dimou at +1 416 943 5438 or email [email protected].
All company information is sourced from publicly available sources, including company websites and regulatory announcements.
Please note, all $ refers to Canadian dollars unless otherwise indicated.
Contact us
Jay Patel Canadian Mining & Metals Transactions Leader +1 416 943 3861 [email protected] Bruce Sprague Canadian Mining & Metals Leader +1 604 891 8415 [email protected]
Canadian Mining Eye Q2 2013
Canadian mining equities witnessed a significant plunge in the second quarter, indicating impaired investor confidence. The headwinds felt in the first quarter of the year continued in the second quarter, challenging Canadian mining and metals companies. The Canadian Mining Eye index plunged deeper and closed down 34% in Q2 2013, and down 42% in the past 12 months.
With a majority of the constituents of the Canadian Mining Eye index owning gold assets (51%), the direction of gold prices did not help. Gold prices declined in the second quarter due to growing concerns around the tapering of quantitative easing. However, by mid-July, gold prices stabilized, albeit at levels much lower than at the end of 2012.
Uncertainty still surrounds gold prices, with mixed predictions. These growing concerns are translating into a challenging market for capital access as investors become more risk averse.
Canadian mining companies are focused on streamlined operations, efficient cost management and capital management practices, including the disposal of non-core assets. In addition, companies are responding creatively to financing constraints in the equity market by seeking out opportunities in the debt markets, and attracting private investors with a long-term perspective on the sector.
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Canadian Mining Eye index and S&P/TSX Composite index performance over Q2 2013 Source: EY, Thomson Datastream
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Canadian Mining Eye index and peers over Q2 2013 Source: EY, Thomson Datastream
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FTSE All Share Mining (rebased) S&P/TSX Composite Metals & Mining (rebased)
S&P/ASX 300 Metals & Mining (rebased)
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FTSE All Share Mining (rebased) S&P/TSX Composite Metals & Mining (rebased)
S&P/ASX 300 Metals & Mining (rebased)
Q2 2013 Canadian Mining Eye in review
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Coal and Consumable Fuels
Diversified Metals and Mining
Gold
Silver
Base metals
Royalty and streaming
Platinum Group Metals
Fertlilizer minerals
Uranium
Technology minerals
Diamonds
Share price movement over Q2 2013 by commodity group
The Canadian Mining Eye index lost 34% over Q2 2013 — compared with 13% over Q1 2013 and 42% over past 12 months. This indicates a considerable underperformance relative to the 5% decline by the S&P/TSX Composite index in the second quarter. Further, the London Metal Exchange index (LMEX) fell 10% in Q2 2013. The market witnessed a negative momentum in metal prices due to the fear of tightening monetary policies and lower-than-expected demand from emerging markets.
Gold prices tumbled further and were down 23% in Q2 2013. By 20 June, gold prices fell below US$1,300 an ounce, with talks of quantitative easing tapering as early as fall of this year and inflation still lingering at lower levels. By mid-July, the US Federal Reserve chairman Ben Bernanke’s comments that a highly accommodative monetary policy is required to support the US economy triggered a slight rebound in gold prices. However, the near-term outlook for gold prices remains uncertain. Mining companies view that the gold mining industry is not sustainable at current price levels.
Copper prices fell 10% over the quarter on the London Metal Exchange (LME). The fall was largely due to an overall negative sentiment and growing concerns around monetary tightening in China, the largest consumer of the metal. Towards mid-July copper prices rebounded on the expectation that China may soften its stance on credit policy. However, copper is still down 11% this year as inventories more than doubled.1 In the precious metals category, spot silver prices plummeted 34% over Q2 2013 due to a weak trend in global markets. 1 “Copper Reaches Three-Week High on Outlook for Further Stimulus," Bloomberg, 11 July 2013.
Companies across the sector are being impacted due to uncertainty and risk aversion. The majors witnessed a much deeper 25% fall in Q2 2013 compared to an 11% decline in Q1 2013. Significant decline in gold prices and escalating costs have led to the erosion of market value for Canadian mining companies in the last quarter.
Globally, mining companies have witnessed significant write-downs in the value of their assets with persistent decline in metal prices. Mining companies are beginning to see their market capitalization fall below the carrying value of their assets. Some companies are considering impairment of goodwill and assets. For example, Barrick Gold2 indicated that it was considering asset impairment charge in the range of US$4.5b to US$5.5b in Q2 2013, primarily in respect of its Pascua-Lama project.
2 "Barrick Provides Updates on Pascua-Lama Project," Barrick website, www.barrick.com, 28 June 2013.
Initial public offering volumes in the mining sector remained muted in the second quarter as well, indicating companies are reluctant to raise equity on dilutive terms and investors are selective about available opportunities. Toronto’s exchanges had only a few small floats that made it through to the TSX Venture Exchange.
Canadian mining companies raised debt proceeds of US$12.2b in Q2 2013 compared to US$8.9b in Q1 2013, indicating the extent of liquidity available in the debt market despite the continuing turmoil.3 Companies have established agility in their approaches to meet the funding challenges and tap these available opportunities. Barrick Gold4 raised US$3b in May in the bond market to partially refinance its existing debt. Kinross Gold5 was able to extend the maturities of its US$2.5b credit facilities and loans. The extended debt profile will defer debt repayment obligations in the short term.
3 Debt raised includes bonds, syndicated loans and convertible bonds, but excludes non-syndicated loans. 4"Barrick Completes Sale of $3 Billion of Debt Securities," Barrick website, www.barrick.com, 2 May 2013. 5"Kinross extends maturity date of revolving credit facility and term loan," Kinross website, www.kinross.com, 10 June 2013.
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Jurisdictional challenges remain for Canadian mining companies operating in emerging markets. For instance, Kinross Gold’s6 negotiation with the Ecuadorian Government did not materialize in Q2 and the company decided to discontinue the Fruta del Norte mining project due to the proposed 70% revenue-based windfall profits tax.
Finding opportunities to withstand the continuing headwinds Despite the current turbulent times, the second quarter of 2013 witnessed mining companies implement a variety of strategies to withstand the continuing headwinds. Majors are responding by managing costs, disposing of non-core assets and focusing on profitability. Mid-tiers and juniors, on the other hand, are focusing on acquisition opportunities to gain critical mass, diversify their risk profile, and benefit from synergies. Further, few companies sought opportunities in the debt market in order to raise capital and tap the available liquidity.
Given the present pricing environment many miners are focused at re-optimizing their life of mine plans and mining operations to high grade and/or avoid low grade material, where practical.
Managing cost
Majors are responding to the current deep plunge in commodity prices amid escalating costs by streamlining operations. A number of companies have announced plans to reduce their headcounts to focus on profitability and shareholder value.
Barrick Gold plans to reduce its corporate headcount by 30% to streamline the business. The decision came after a series of challenges faced by the company that included temporary slowing down of Pascua-Lama project.
Newcrest Mining plans to reduce its workforce by a further 100, bringing the year’s total reduction to 250 this year, and the company expects this move to decrease its corporate costs by 20% in 2013 to 2014. Newmont Mining plans to reduce its headcount in Colorado by 33% to streamline its operating model and improve efficiency.
6"Kinross announces it will cease development of Fruta del Norte," Kinross website, www.kinross.com, 10 June 2013.
In addition, many miners will be looking to re-negotiate pricing with their suppliers and thus reduce and manage operating and capital costs.
Non-core asset disposals
A number of mining majors announced the disposal of non-core assets in order to focus strategically on the core assets in their business.
BHP Billiton disposed its Pinto Valley copper mine and San Manuel Arizona Railroad to Capstone Mining at, according to some equity analysts, a better price than expected.7 The divestiture will help the company to pay off debt and enhance NAV accretion.8 In addition, some analysts believe that BHP Billiton’s enhanced focus on costs should increase investors' confidence and support higher return to shareholders.9
Another large-cap player, Rio Tinto, has also announced a number of divestitures to manage costs. The company agreed to sell its development-stage mine Rio Tinto Eagle to Lundin Mining in June 2013. Analysts believe that the asset sale will act as a catalyst to improve shareholder returns in the long run.10 The company also considered spinning off its diamond business in Q2 2013 but later withdrew its decision, as management believes that the fundamentals for diamonds remain strong in the medium to long term.
Synergistic acquisitions
We saw examples of companies with some flexibility in cash using this downturn as a strategic opportunity for growth through acquisition.
Agnico Eagle Mines leveraged its strong cash position to acquire five properties with a total value of $66m. The company took minority positions in several small properties to diversify its asset portfolio, with reduced risk exposure through toehold investments.
New Gold took advantage of the falling equity valuation of Rainy River Resources and made a takeover offer. The acquisition will help New Gold to add growth in a low-risk jurisdiction. According to CIBC’s total acquisition cost (TAC) analysis, New Gold is paying approximately US$885/oz on resources and approximately US$1,020/oz on reserves, which
7 "Australia Equity Research," J.P. Morgan, 29 April 2013. 8 "The Global Mining & Metals Specialist," Macquarie Research, 29 April 2013. 9 "Australia Equity Research," J.P. Morgan, 24 June 2013. 10 "Mining Australia," CIMB, 16 May 2013
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is slightly below the average TAC of recent transactions.11 However, some analysts view the deal as an addition of another early-stage development project to New Gold’s portfolio. New Gold shares were down 8% on the date of announcement, signaling a dilutive transaction.
Teranga Gold, which held 13.6% in Oromin Explorations, announced a plan to acquire the remaining stake in the company to strengthen its control over the adjacent OJVG gold project. Oromin Explorations owns a 43.5% stake in the OJVG gold project, which is strategically located adjacent to Teranga’s Sabodala gold mine in Senegal. Teranga Gold sees the acquisition to be accretive and to add value to its shareholders.
Alternative financing
The current equity market remains tough to raise money, but we saw liquidity in the debt market as well:
North American Palladium announced a debt raising of US$130m from Brookfield Capital Partners for the operations of its Lac Des Iles (LDI) mine in Ontario. In addition, the company raised US$20m in flow-through shares. Though some analysts see the cost of debt of 15% to be very high, the proceeds should help the company with sufficient capital for short-term operations. However, given that the financial leverage has increased significantly, addressing any capital shortfall in future would be challenging for the company.12
Banro Corp., a junior gold explorer, raised US$100m by issuing a mix of preferred and common shares. As the preferred shares are most commonly issued by major players due to the fixed dividend payments attached to them, shareholders were cautious on the announcement and the share price declined 11% on the same day.
11 "Institutional Equity Research," CIMB, 3 June 2013. 12 "Institutional Equity Research," CIMB, 10 June 2013.
Outlook
With current uncertainty expected to continue, metal prices are likely to remain subdued but volatile in the near term. Investors with a long-term perspective will enter the market, as they become confident that metal prices have bottomed out and that potential for upside exists. However, some positive catalysts from the global economy should drive growth in the sector — but with moderation given the uncertainty around gold prices impacting many Canadian mining companies.
Financing conditions in equity markets remain challenging, as quarterly equity proceeds raised by the sector continue to decline. Attracting long-term sources of funding will be a major challenge for the sector, with growing investor risk aversion. We believe companies should continue to respond creatively and swiftly to their funding requirements by opting for alternative sources of financing, both debt and equity as well as asset sales.
Constrained access to capital markets and cost escalations aren’t making it easy for Canadian mining and metals companies to stay on track. But opportunities exist for those willing to take a long-term view of the sector. Alignment of the long-term nature of mining projects with shareholder expectations will remain critical as the sector continues to face volatility in equity prices.
Given the situation in which a number of mining projects are becoming marginal or uneconomical due to declining prices and increasing costs, we believe majors should consider the option of sharing asset ownership to mitigate their operational risk and increase overall upside opportunities. Although the cost structures of mid-tier companies and majors are different, managing costs will be challenging for both. However, in terms of growth, we believe mid-tier companies have the potential to grow via acquisition as their major counterparts look to rationalize their portfolios.
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There were very few share price winners in Q2 2013. Only four companies out of the 100 Canadian Mining Eye index constituents realized a net share price gain amid overall negative sentiment and tough market conditions.
Rainy River Resources’ share price gained 36% this quarter in response to the announcement that New Gold would buy Rainy River Resources for $310m at an offer price of $3.83 per Rainy River share. The rise in share price reflects the acquisition premium. The proposed acquisition would help Rainy River mitigate financing challenges for the development of its only asset, Rainy River Gold Project. In Q1 2013, the company lost 47% in market capitalization as investors were cautious on its potential to raise capital for project development.
Lucara Diamond’s share price closed this quarter up by 21% owing to a series of discoveries at its Karowe diamond mine in Botswana and strong revenue from its recent sale tender. Lucara held its first large diamond sale tender in May 2013 and generated US$24.9m from the sale of 15 large stones, highlighting the quality of diamond deposits at the Karowe diamond mine. The company plans to hold a large stone tender later in 2013 for its recent discoveries. On the back of these tenders, it expects to generate additional cash flow to meet its debt obligations of US$33.3m and further strengthen its balance sheet. Lucara Diamond has also announced a higher-than-expected diamond sale guidance of 420,000 carats in 2013.
Mountain Province Diamonds’ stock climbed 19% over the quarter and the price witnessed a substantial increase after CEO Patrick Evans disclosed the prospects of its Gahcho Kué project, a joint venture with De Beers Canada in the Northwest Territories. In Q2 2013, the company’s management highlighted completion of an intense environmental review required for the construction of this diamond mine, and plans to start the construction by the second half of 2013 and commencement of production by end of 2015. The Gahcho Kué diamond mine is expected to have a life of approximately 11 years.
The share price of Thompson Creek Metals, a molybdenum producer, gained 4% this quarter on the back of improved operating performance in Q1 2013 as compared to Q4 2012. The company reported an increase in molybdenum production by 74% year over year to 7.7m lbs., leading to an increase in sales by 18.5% to 8.8m lbs. It also reported strong cash flow on the back of higher-than-expected sales combined with lower operating expenses. Its Mt. Milligan mine remains on schedule and is expected to commence commercial production of copper and gold in Q4 2013.
Winners in Q2 2013
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Canadian Mining Eye index and S&P/TSX Composite index since 2008 Source: EY, Thomson Datastream
Mining Eye S&P/TSX Composite (rebased) Top 25 - TSX Mining
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Canadian Mining Eye index, gold, copper and LME Index over Q2 2013 Source: EY, Thomson Datastream
Canadian Mining Eye LMEX Index (rebased) Gold (rebased) Copper (rebased)
Out of the 100 Canadian Mining Eye index constituents, 96 companies suffered share price falls over the quarter due to a combination of declining metal prices, poor operational performance, asset write-downs and the resultant wider negative market sentiment.
Perseus Mining experienced the most significant decline in share price during the quarter. Perseus’s share price fell by 75%, battered by disappointing gold production guidance for the Edikan project, a lower-grade resource update for the Sissingue project and operational challenges. There is also uncertainty around its project development timetable for the Sissingue project until a fiscal stability agreement is reached with the Government of the Ivory Coast.
The share price of Aurcana Corporation fell by 74% this quarter despite demonstrating consistent operational improvements at its La Negra silver-base metal project. However, declining silver prices and operational challenges faced in the commencement of its Shafter plant impaired investor confidence. The operational challenges at the Shafter plant pertain to plant design, underground development delays as well as high attrition among skilled manpower. The company witnessed a 13.8% drop in market capitalization on 30 April, following its announcement of a share consolidation plan giving shareholders one share for every eight shares held.
Mirabela Nickel is among the largest fallers for a second consecutive quarter. Mirabela’s share price closed the quarter down by 70% in response to a lower-than-expected Q1 performance and declining nickel and copper prices. The company faced operational issues with tonnes mined down by 34%, grade down by 13%, and recoveries down by 5% in Q1 2013 over Q4 2012. It is also struggling to generate free cash flow at prevailing nickel prices to meet its debt obligations.
Golden Star Resources lost 68% over the quarter, following its lower-than-expected Q1 operating results. The company witnessed an increase in pit pushback costs at Chujah and the Bogoso North pit and increased operating expenses due to the extended maintenance on the SAG mill at the Bogoso plant. In addition to these, insufficient supply of ore from the Pampe pit resulted in the suspension of the Bogoso/Prestea non-refractory operations, which is expected to cause a production loss of 35,000 gold oz. in 2013.
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Value of TSX & TSXV mining universe and as % of all TSX & TSXV, 2009 to 2013 Source: EY analysis of data from TSX and TSXV Market Intelligence Group; market values as at quarter-end
Mining Market Cap Mining as a % of all TSX & TSXV (RH scale)
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TSX & TSXV mining admissions and delistings since 2008 Source: EY analysis of data from TSX & TSXV Market Intelligence Group; includes placements, introductions and readmissions; excludes transfers between TSX & TSXV
Admissions Delistings
Changes to the Canadian Mining Eye index During the quarter, Orko Silver, Tiger Resources and Aurizon Mines exited the index due to delisting, and were replaced by Newmont Mining Corporation of Canada, Gold Reserve and Largo Resources.
Admissions • Aurania Resources joined the TSXV in April
as it completed its initial public offering, raising gross proceeds of $2m. Aurania focuses on exploration of gold, uranium and copper. The company intends to use the net proceeds raised in its proposed program of exploration at the Mont Chemin, Marécottes and Siviez projects in Switzerland.
• Black Widow Resources was admitted to the TSXV via an IPO in April, raising approximately $1.1m. The company is focused on exploration of precious and base metals, with two wholly owned exploration projects and a third project with a 59.8% stake located in Ontario.
• Plate Resources joined the TSXV on 19 June, raising gross proceeds of $750K via an IPO. Plate is a junior mining resource exploration company focused on acquiring mineral properties and exploring mineral resources. The company intends to use the proceeds in completing its Phase I work program at the Lucky Mike Property located in British Columbia.
Market exits • Tiger Resources, which is also
listed on the Australian Stock Exchange, decided to delist its shares from the TSX due to limited trading volume over a sustained period of time. Tiger Resources’ shares have not been traded on the TSX since the close of trading on 30 April.
• Aurizon Mines shares were delisted on 5 June following the completion of its acquisition by Hecla Mining, a US silver producer with operating
silver mines in Alaska and Idaho. As a result of the acquisition, Hecla Mining now operates a gold mine in Quebec.
• Orko Silver delisted from the TSXV on 16 April following its acquisition by Coeur d'Alene Mines. Orko’s shareholders accepted the terms of the plan of arrangement wherein they would receive a combination of cash and/or shares and warrants of Coeur d'Alene Mines.
Ins and outs of the TSX & TSXV mining universe
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Total equity proceeds of $1.07b were raised by TSX- and TSXV-listed mining companies in Q2 2013, compared with $1.157b (-8%) in Q1 2013 and $1.136b (-6%) in the same period a year ago. The total comprised $5.1m of funds from new issues and $1.065b from further issues of equity.
Detour Gold, a Canadian gold mining company, raised $176m through a secondary public offering. The proceeds will be used to finance the ramp up at the Detour Lake open pit mine located in northeastern Ontario. According to the company, the mine is expected to produce an average of 657,000 ounces of gold per annum over its expected life of 21.5 years.
Allied Nevada Gold raised US$150m by way of equity issuance to a syndicate of underwriters to fund capex at its Hycroft mine near Winnemucca, Nevada.
MBAC Fertilizer, an integrated phosphate and potash fertilizers producer in Latin America, raised gross proceeds of $51.7m via a private placement of equity shares, including the partial exercise of the underwriters’ option. The funds will be used for the completion of its Itafós phosphate and single super phosphate project in central Brazil.
Pretium Resources, a company engaged in the acquisition, exploration and development of precious metal resource properties in the Americas, raised approximately $40m via a private placement deal with Boston-based Liberty Metals & Mining Holdings, LLC. The fundraising will enable the company to fund the development of its Brucejack project located in northern British Columbia, including the completion of the planned 10,000-tonne bulk sample and underground drilling program at Brucejack project’s Valley of the Kings.
Probe Mines, a Canadian base and precious metal exploration company, raised $15m via a bought deal-brokered private placement. The company intends to use the net proceeds for its exploration projects. Its key asset is the Borden Gold project in Ontario.
Alpha Minerals, a junior mineral exploration and development company with focus on uranium and gold properties in North America, raised equity financing of $12.2m via a private placement. The funds will primarily be used in advancing Alpha’s joint venture Patterson Lake South in the South West Athabasca region of Saskatchewan.
Kilo Goldmines, a gold and iron ore exploration and resource development company with prospects and resources in the northeastern region of the Democratic Republic of the Congo (DRC), raised gross proceeds of $10m through a secondary public offering. The proceeds will be used to fund the exploration at its Somituri gold property in the DRC.
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Quarterly trend of funds raised on TSX & TSXV - mining and all sectors Source: EY analysis of TSX & TSXV Market Intelligence Group
Mining new issues C$m Mining further issues C$m TSX & TSXV total issues C$m
Fundraising in Q2 2013
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Fundraising on TSX & TSXV, 2009 to 2013 Source: EY analysis of TSX & TSXV market statistics
Mining All TSX & TSXV Mining as % of all TSX
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6 5 284 1,065 1,070 1,537 9,291 10,828 10 Q1 2013
0 0 415 1,157 1,157
938 8,898 9,836
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19 347 492 2,658 3,005
2,508 12,326 14,834
20 Q3 2012
6 9 357 2,984 2,993
344 13,430 13,774
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10 11 331 1,125 1,136
1,050 9,778 10,828
10 Q1 2012
14 23 475 3,132 3,155 506 16,581 17,087 18
Q4 2011
11 30 410 1,934 1,964 1,041 10,236 11,276 17 Q3 2011
23 107 366 2,160 2,268 1,315 9,027 10,342 22
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20 107 467 2,696 2,803 2,887 12,221 15,107 19 Q1 2011
16 119 678 5,322 5,440 1,656 12,702 14,358 38
Q4 2010
35 661 860 7,249 7,910 4,616 15,714 20,330 39 Q3 2010
18 67 420 1,985 2,052 1,615 6,488 8,103 25
Q2 2010
17 491 499 4,059 4,550 2,977 11,567 14,545 31 Q1 2010
23 93 536 3,144 3,237 1,826 9,178 11,003 29
Q4 2009
13 11 760 3,336 3,347 1,850 16,209 18,059 19 Q3 2009
11 4 589 9,556 9,560 1,617 18,342 19,960 48
Q2 2009
7 3 457 4,280 4,283 1,102 13,390 14,492 30 Q1 2009
12 4 373 4,612 4,616 288 12,088 12,376 37
2012
49 391 1,655 9,899 10,290
4,408 52,115 56,523
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70 362 1,921 12,112 12,474
6,899 44,185 51,084
24 2010
93 1,312 2,315 16,437 17,749
11,034 42,947 53,981
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43 23 2,179 21,784 21,806
4,858 60,029 64,887
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1Initial public offering (IPO) - TSX & TSXV as primary exchanges of listing. 2Funds raised from follow-on issue of shares and private placements.
Fundraising on TSX & TSXV, 2009-13
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Index constituents selected at start of each quarter Source: EY, TSX and TSXV Market Intelligence Group
Q2 2013
MV ($m)
Q2 2013
MV ($m)
Q2 2013
MV ($m)
Alamos Gold 1,625
SEMAFO 424
North American Palladium 187 Coeur Mining 1,421
Continental Gold 417
Sabina Gold & Silver 185
Stillwater Mining 1,337
Rubicon Minerals 389
Coalspur Mines 183 First Majestic Silver 1,306
Anglo Pacific Group 384
Canada Lithium 179
Dominion Diamond 1,264
OceanaGold Corporation 382
Duluth Metals 174 HudBay Minerals 1,197
Taseko Mines 380
Guyana Goldfields 170
Sherritt International 1,158
Platinum Group Metals 371
Karnalyte Resources 170 AuRico Gold 1,138
Mag Silver 370
Nevada Copper 162
China Gold International Resources 1,110
Sierra Metals 368
Bear Creek Mining 157
Katanga Mining 1,068
Endeavour Silver 363
Largo Resources 157 Argonaut Gold 848
Rainy River Resources 356
Lydian International 156
Torex Gold Resources 807
Sprott Resource 353
Newmont Mining Corporation of Canada 155
Centerra Gold 785
Rio Alto Mining 343
Silvercrest Mines 155 Imperial Metals 781
NGEx Resources 337
Copper Mountain Mining 154
Paladin Energy 720
Timmins Gold 334
Colossus Minerals 152 Pretium Resources 714
Augusta Resource 319
Inova Resources 150
NovaGold Resources 712
Kirkland Lake Gold 310
Teranga Gold 147 Allied Nevada Gold 703
MBAC Fertilizer 307
Chesapeake Gold 141
Ivanplats Limited 685
Lucara Diamond 301
Polymet Mining 136 Walter Energy 681
Tanzanian Royalty Exploration 288
Golden Star Resources 135
Capstone Mining 679
Virginia Mines 288
Troy Resources 135 Alacer Gold 637
Romarco Minerals 275
Lake Shore Gold 133
Nevsun Resources 619
Premier Gold Mines 274
PMI Gold 132 Dundee Precious Metals 596
Altius Minerals 267
Belo Sun Mining 125
Sandstorm Gold 577
Copper Fox Metals 238
Brigus Gold 123 Denison Mines 563
International Minerals 236
Luna Gold 110
Thompson Creek Metals Company 546
Endeavour Mining 231
Aurcana Corporation 82
Centamin 545
SouthGobi Resources 226
Mirabela Nickel 75 Silver Standard Resources 543
Perseus Mining 224
Primero Mining 542
Mandalay Resources 221
Gabriel Resources 538
Gold Reserve 214
Total universe MV $m 251,410
McEwen Mining 535
Lumina Copper 211
Top 25 MV $m 190,578 Silvercorp Metals 504
Banro Corporation 207
Total universe excl Top 25 MV $m 60,832
Mountain Province Diamonds 494
Northern Dynasty Minerals 203
MV of Canadian Mining Eye constituents 43,780
Seabridge Gold 450
Asanko Gold 191
MV Canadian of Mining Eye constituents as a % of MV of total universe, excl. Top 25 72% Fortuna Silver Mines 439
Paramount Gold and Silver 191
Shading represents index entrants
MV - Market value
Aurizon Mines, Orko Silver and Tiger Resources exited the index during the quarter. Ivanhoe Australia changed its name to Inova Resources in June 2013.
Index constituents selected at the start of quarter
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EY’s Global Mining & Metals Center With a strong but volatile outlook for the sector, the global mining and metals sector is focused on future growth through expanded production, without losing sight of operational efficiency and cost optimization. The sector is also faced with the increased challenges of changing expectations in the maintenance of its social license to operate, skills shortages, effectively executing capital projects and meeting government revenue expectations.
EY’s Global Mining & Metals Center brings together a worldwide team of professionals to help you succeed — a team with deep technical experience in providing assurance, tax, transactions and advisory services to the mining and metals sector. The Center is where people and ideas come together to help mining and metals companies meet the issues of today and anticipate those of tomorrow. Ultimately it enables us to help you meet your goals and compete more effectively.
Area contacts Global Mining & Metals Leader Mike Elliott Tel: +61 2 9248 4588 [email protected] Oceania Scott Grimley Tel: +61 3 9655 2509 [email protected] China and Mongolia Peter Markey Tel: +86 21 2228 2616 [email protected] Japan Andrew Cowell Tel: +81 3 3503 3435 [email protected] Europe, Middle East, India and Africa Mick Bardella Tel: +44 20 7951 6486 [email protected] Africa Wickus Botha Tel: +27 11 772 3386 [email protected] Commonwealth of Independent States Evgeni Khrustalev Tel: +7 495 648 9624 [email protected] France and Luxemburg Christian Mion Tel: +33 1 46 93 65 47 [email protected] India Anjani Agrawal Tel: +91 982 061 4141 [email protected]
United Kingdom and Ireland Lee Downham Tel: +44 20 7951 2178 [email protected] Americas and United States Andy Miller Tel: +1 314 290 1205 [email protected] Canada Bruce Sprague Tel: +1 604 891 8415 [email protected] South America and Brazil Carlos Assis Tel: +55 21 3263 7212 [email protected] Service line contacts Global Advisory Leader Paul Mitchell Tel: +86 21 2228 2300 [email protected] Global Assurance Leader Tom Whelan Tel: +1 604 891 8381 [email protected] Global IFRS Leader Tracey Waring Tel: +61 3 9288 8638 [email protected] Global Tax Leader Andy Miller Tel: +1 314 290 1205 [email protected] Global Transactions Leader Lee Downham Tel: +44 20 7951 2178 [email protected]
EY | Assurance | Tax | Transactions | Advisory About EY
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© 2013 EYGM Limited. All Rights Reserved. EYG no. ER0090 CSG/GSC2013/1106910 This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice.
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