Gold price rebounds 2% as Goldman reiterates $3,000 target
Bullion has declined about 7% from a record last month, with losses accelerating after Trump’s victory.
Canadian mining equities didn’t fare great again in Ernst & Young’s most recent Canadian Mining Eye report, with the index dropping 1% in Q1 2015, yet much better than in the same period last year, which saw a 12% decline.
The index — which tracks Canadian mining sector performance of 100 TSX and TSXV mid-tier and junior companies with market capitalizations between $2.1bn and $160m — reveals that most players are still working on controlling expenses, as declining grades continue to put pressure on costs.
Source: Ernst & Young Q1 2015 Canadian Mining Eye.
“Things like fluctuating commodity prices, stretched balance sheets and exploration shutdown are all challenging miners,” says Bruce Sprague, EY’s Canadian Mining & Metals Leader. “But with challenges come opportunity. We’re seeing many mining companies putting efforts into streamlining inventory, optimizing working capital, divesting non-core assets and strengthening their focus on portfolio management.”
Source: Ernst & Young Q1 2015 Canadian Mining Eye.
These are the main trends highlighted in the report:
Signs of life are more dominant among major miners, says E&Y. The group witnessed an increase of 4% in Q1 2015 compared to a 9% decrease in Q4 2014.
You can read the full report here.
