That is welcome news to an industry that survived the crashing commodity prices of late 2008. Last year, 2009, management got back to basics and the effort is paying off.
"The mining sector has been buoyed by a renewed optimism that's being driven by increasing demand and renewed interest in the commodities market - particularly with respect to gold and the general economic recovery," says Tom Whelan, leader of Ernst & Young's national mining practice.
The Ernst & Young report along with a list of the Top 100 companies may be read at www.EY.com/Publication/vwLUAssets/MiningReport_Mar2010/$FILE/MiningReport_Mar2010.pdf. It ranks Canada's leading 100 TSX-traded mining companies based on market capitalization. Among its findings:
The report highlights that perhaps the most profound effect of the global financial crisis on the metals and mining industry is that the world has lost as much as two years of growth in the supply of scarce resources. If demand rebounds back to its long-term growth rate as anticipated, there will have to be higher product prices, for longer, before the sector responds with new capacity, leading to metal prices increasing sharply - with the potential for deal prices to follow.
I believe the worst is behind us and welcome the renewed interest investors are showing in the mineral industry.