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Globe says TSX, TSX-V feel effects of gold's revival

2016-07-21 07:40 ET - In the News

See In the News (C-*TSE) Toronto Stock Exchange

The Globe and Mail reports in its Thursday edition that after four years of hard times, Canada's junior mining sector is once again attracting fresh capital and new investors. The Globe's Ian McGugan writes that the recent outburst of enthusiasm is centred on gold miners and 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. Some mining executives 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. According to a report by consultants Ernst & Young, at the height of the commodity supercycle in 2011, miners listed on the Toronto Stock Exchange and TSX Venture Exchange enjoyed a market capitalization of $426-billion. By the end of 2015, the market value of those companies had shrunk to a mere $180-billion. Last year alone, 172 mining and metals companies delisted.

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