TORONTO – Once again EY has examined the Canadian mining equities market and has found reasons to be optimistic, according to its latest Canadian Mining Eye: Q2 2014. The report points out the index gained 9% during the quarter and outperformed the S&P/TSX Composite index that gained 6% and the London Metal Exchange index at 7%.
EY says that the stronger performance was made possible by an increase in metals prices. Bruce Sprague, EY’s Canadian mining and metals leader is optimistic. “Overall, we anticipate the third quarter to continue to show positive trends with mixed expectation on metal prices,” he said.
The recent Mining Eye also delved in to two further important topics: M&As and diamonds. Although merger and acquisition activity was subdued in the second quarter, mining companies are still examining asset disposal both as a means of raising capital and of prioritizing core projects. Polished diamonds prices have improved 4.5% in the first six months of 2014, and the second half year could see additional improvement as there is potential growth in demand and availability of financing.
EY is proudly celebrating 150 years in Canada. For more information, please visit EY.com/ca.