TSX-V junior mining sector continues impressive growth: PwC
surveyIt was another very
impressive year for Canada’s junior mining industry on the TSX
Venture Exchange (TSX-V). According to the second annual
PricewaterhouseCoopers (PwC) report on Canada’s junior
mining sector — review of trends in the TSX-V mining industry —
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.”
$3 billion was generated through share issues in 2007 as
investors saw potential in exploration and development. 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.
Investor interest in higher-risk junior companies was strong in
2007 and evident in the growing market caps on the TSX-V.
Companies in the top 100 with market caps above $200 million
more than doubled to 29 in 2007 from 14 companies in 2006. Those
that made the top five had their market caps range from $558
million to $1.15 billion in 2007, compared with a range of $475
million to $1.23 billion a year earlier.
The top five companies in 2007 by market capitalization were:
- Northern Dynasty Minerals
Ltd. ($1.15 billion)
- Seabridge Gold Inc. ($764
million)
- Osisko Exploration Ltd.
($714 million)
- Nautilus Minerals Inc.
($577 million)
- Palmarejo Silver and Gold
Corporation ($558 million)
For more information on PricewaterhouseCoopers (PwC) report on
Canada’s junior mining sector — review of trends in the TSX-V
mining industry— please visit
www.pwc.com/ca/mining
Or contact:
Lisa An
PricewaterhouseCoopers LLP
416.941.8383 ext. 14368
lisa.an@ca.pwc.com
PricewaterhouseCoopers (www.pwc.com)
provides industry-focused assurance, tax and advisory services
to build public trust and enhance value for its clients and
their stakeholders. More than 146,000 people in 150 countries
across our network share their thinking, experience and
solutions to develop fresh perspectives and practical advice. In
Canada, PricewaterhouseCoopers LLP (www.pwc.com/ca)
and its related entities have more than 5,200 partners and staff
in offices across the country.
“PricewaterhouseCoopers” refers to PricewaterhouseCoopers LLP,
an Ontario limited liability partnership, or, as the context
requires, the PricewaterhouseCoopers global network or other
member firms of the network, each of which is a separate and
independent legal entity.
CANADIAN MINING NEWS
