Looking over the news offerings of the past week, I have noticed a number of stories related to uranium, and many news releases about Canadian gold and copper exploration projects. Theres a reason, which was made clear by a report released this week by CANADIAN FINANCIAL BULLETIN (CFB).
CFBs 2007 Quarter 1 Review for Mining, Oil & Gas and Tech says the first quarter of this year was a period of exceptional growth… The TSX achieved new highs and now appears to be advancing towards all-time index highs.
In the first quarter, Canadian-listed mining companies raised almost Cdn$3.5 billion, slightly below the $3.85 billion raised in the same period of 2006, but well ahead of the $1.3 billion in Q1 2005. Indications are that 2007 will be a record year for the mining sector. While uranium and molybdenum prices are consistently setting records (perhaps not this week for uranium, which took a slight tumble in the markets), silver, nickel and copper are all trading near all-time highs. The report adds that, Gold remains a bedrock commodity in the Canadian investment landscape, with more than 45% [$1.7 billion] of all mining-related finance in Q1 attributable to gold. The next two highest commodities for Q1 financings were uranium ($905 million) and copper ($581 million).
The three largest mining financings of Q1 2007 were Toronto-based URAMIN INC. ($267 million to take its Trekkopje uranium mine in Namibia to production next year), Vancouver based QUADRA MINING LTD. ($234 million mainly to fund the construction and development of the Carlota copper project in Arizona) and Toronto-based EQUINOX MINERALS LTD. ($211 million to fund the development of the Lumwana copper project in Zambia).
To register for the latest CFB reports visit www.canadianfinancing.com. CFB is a specialized media channel created by Blender Media Inc., that provides capital market intelligence to a broad spectrum of the finance industry. The CFB database tracks unique value-added financing-related data that are currently unavailable elsewhere.