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After four years of hard times and grinding retreat, Canada’s junior mining sector is once again attracting fresh capital and new investors.
The recent outburst of enthusiasm is centred on gold miners, says Michelle Grant, senior vice-president at consultants Ernst & Young and leader of its mining and metals transactions team in British Columbia.She expects acquisition activity in the sector to pick up speed in the months ahead as companies look for ways to ride the upswing in precious metals prices.
“There’s a new fear of missing out,” she says. She has talked to several mining executives who already regret not bidding more for potential acquisitions last year, given the big run-up in gold miners’ shares since the start of the year.
Their abrupt shift in attitude demonstrates – once again – the tendency of miners and mining investors to jump from despair to euphoria, and vice versa.
Until January, miners had been trapped in a vicious down market for years. Ms. Grant chronicles the extent of that slump in a report published this week.
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