Mine 2017: Stop. Think... Act.

Canadian insights

Canada’s largest mining companies played a prominent role in the sector’s emerging global recovery that began in 2016. Canadian companies’ rising valuations kept pace with those of their international counterparts, and six Canadian-based miners made the global Top 40 as their aggregate market valuation soared by 46% last year.

In addition, four Canadian-based companies ranked among the five largest metal streaming/royalty businesses in the world, putting Canada at the forefront of alternative financing. 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.

A worker looks on at machinery operating on a mine site.

"By being the top destination for exploration in the world, Canada is able to stay active when it comes to major future global mining projects, keeping the country a preferred mining target from an operations standpoint as well as displaying Canadian miners’ exploration skills and expertise.”

— Maxime Guilbault, Senior Manager, Assurance, Mining

Canada also led the way on equity financing in 2016, with the Toronto Stock Exchange (TSX) and TSX Venture Exchange responsible for 57% of global financings during the year, according to the TMX Group and S&P Global Market Intelligence.

Raised in the Canadian stock market (USD)

A graph showing the equity capital raised in the Canadian stock market (USD).  TSX (USD) vs. TSX-V (USD)

Industry in perspective

Exploration dollars poured into Canada at a faster rate than anywhere else in the world last year. The country attracted 14% of the total global exploration budget. Australia was a close second with 13%, followed by the United States (7%). Members of the Top 40 limited the number of new mining investments made in 2016, favouring geographies considered to be the more politically stable for such investment. Even with commodity prices rebounding and operating costs at a cyclical low, miners are continuing to be cautious with new investments.

Canadian-based members of the Top 40 demonstrated a leadership role in diversity during 2016. For example, women filled 21% of the board of director seats in Canada, compared with 16% of the directorships among the non-Canadian companies.

The Canadian miners are also taking a lead role in the early adoption of new technologies. Goldcorp, for instance, recently began using IBM’s cognitive computing system known as Watson, which unlike traditional computers can learn from interactions with data and humans. And Barrick Gold has begun to work with Cisco Systems to embed digital technology throughout its Cortez mine in Nevada, with the aim of improving decision-making and performance.

The Canadian impact

Canada continues to be a leading destination for mining in the world, both in terms of raising capital and exploration, continuing to play a part in many of the major future global mining projects. This continued investment allows Canada to continue to attract a strong talent pool of people connected to the industry, from finance professionals in the many head offices located in Canada, to the geologists monitoring drill holes in the northern territories, giving us momentum that ensures Canada is a strong participant in a strengthening industry.

Top destinations for mining exploration

A map of the top destinations for mining exploration in the world. Canada attracted more of the global exploration budget than any other country at 14%.

 

 

Contact us

Dean Braunsteiner

National Mining Leader, PwC Canada

Tel: +1 416 869 8713

Liam Fitzgerald

Partner, Competency, Innovation & Legal Tax Leader, PwC Canada

Tel: +1 416 869 2601

Nochane Rousseau

Managing Partner, Greater Montréal, PwC Canada

Tel: +1 514 205 5199 

Mark Platt

Partner, Assurance, PwC Canada

Tel: +1 604 806 7093

Mark Patterson

Partner, PwC Canada

Tel: +1 604 806 7160

James Lusby

Partner, Assurance Group, PwC Canada

Tel: +1 416 365 8181

Marelize Konig

National Business Transformation Leader, PwC Canada

Tel: +1 416 814 5862

Stephen Mullowney

Partner, Corporate Finance, Mining, PwC Canada

Tel: +1 416 687 8511

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