Overseas transactions played a big role in helping Canadian mining companies recover from their lows "with a vengeance" in 2009, a new study shows.<\/p>\n
A report by Ernst & Young, which highlights the top 100 mining companies on the Toronto Stock Exchange, says that their aggregate market capitalization increased a staggering 74% in 2009, from $187-billion in January to $325-billion in December.<\/p>\n
One factor behind their success was their ability to do deals overseas. The study shows that a record 442 deals were completed by Canadian mining companies abroad, worth $10.2-billion. While the dollar figure was down from 2008, the number of deals was way up.<\/p>\n
\u201cI think it speaks to the international prowess of the Canadian mining industry,\u201d Tom Whelan, head of Ernst & Young\u2019s national mining practice, said in an interview. \u201cIt was no small feat.\u201d<\/p>\n
Traditional financing became extremely difficult after the credit crisis, but many companies were able to raise capital from state-owned entities overseas. The single biggest deal was the $1.74-billion investment that Teck Resources Ltd. received from China Investment Corp. (CIC). Other notable deals were CIC\u2019s US$500-million investment in SouthGobi Energy Resources Ltd., and the US$240-million that Consolidated Thompson Iron Mines Ltd. received from Wuhan Iron and Steel Group.<\/p>\n
Some Canadian companies were active in overseas M&A as well, The biggest deal there was Eldorado Gold Corp.\u2019s takeover of Sino Gold Mining Ltd.
Mr. Whelan said he is a bit surprised that there has not been more deal-making in the current market. Part of the reason is that boards are now much more risk-averse than they used to be.<\/p>\n
He also said that he is encouraging companies to be as proactive with host governments as possible. He pointed out that no matter how many jobs companies create, governments will always want to see a fair return.<\/p>\n
\u201cIt\u2019s a great business to be in because there\u2019s so much to manage and so many risks,\u201d he said.
Peter Koven<\/i><\/p>\n
<\/p>\n","protected":false},"excerpt":{"rendered":"
Overseas transactions played a big role in helping Canadian mining companies recover from their lows "with a vengeance" in 2009, a new study shows. A report by Ernst & Young, which highlights the top 100 mining companies on the Toronto Stock Exchange, says that their aggregate market capitalization increased a staggering 74% in 2009, from […]<\/p>\n","protected":false},"author":4062,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-405749","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/405749","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/4062"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=405749"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/405749\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=405749"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=405749"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=405749"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}