Junior miners on the rise

Last year was another very impressive year for Canada’s junior mining industry on the TSX Venture Exchange, says the Review of Trends in the TSX-V Mining Industry. According to PricewaterhouseCoopers (PwC)’s second annual report on Canada’s junior mining sector, while the market cap for the entire TSX-V increased a solid 14%, the mining sector surged 45% and the top 100 mining companies saw their market caps rise 37%.

The PwC survey examines the top 100 mining companies on the TSX-V based on market capitalization as at June 30, 2007.Paul Murphy, PwC partner and Canadian mining practice leader, noted, “The mining sector led the exchange in more than growth; it also had presence. Of the more than 2,000 companies listed on the TSX-V, 47% were mining companies.”

Total assets for the top 100 rose to $6.6 billion in 2007 from $4.1 billion in the previous year. Revenue jumped 81% in 2007 to more than $471 million. “Part of the increase can be attributed to the rise in the number of producing companies, up four to 17, from the year before,” said Murphy.

Commodity prices continued to play a significant role in growth with prices remaining strong. Emerging markets like China and India helped fuel demand for steel, copper and gold, while plans for more nuclear reactors added to the demand for uranium.

The top five companies in 2007 by market capitalization were: Northern Dynasty Minerals ($1.15 billion), Seabridge Gold ($764 million), Osisko Exploration ($714 million), Nautilus Minerals ($577 million), and Palmarejo Silver and Gold ($558 million).

For more information on Pricewaterhouse- Coopers’ report on Canada’s junior mining sector visit www.pwc.com/ca/mining.

PricewaterhouseCoopers provides industry-focused assurance, tax and advisory services. In Canada, PricewaterhouseCoopers LLP and its related entities have more than 5,200 partners and staff in offices across the country.