The Globe and Mail reports in its Wednesday, March 8, edition that miners are doomed to repeat the
mistakes of the past, as commodity
prices rise and optimism seeps
back into sector, financiers say.
The Globe's Rachelle Younglai writes that as confidence now
grows along with share prices
and profits, mining companies
are cautiously exploring ways to
expand. Big companies such as Goldcorp
have said they are eyeing
partnerships with other miners
to share the risks of building and
operating mines. Barrick Gold is taking
small steps forward, such as
studying the prospects of an underground
mine at its suspended
South American project.
Investors are moving back into
the sector and starting to take
note of the quality of the medium-sized and smaller mining
companies, some of which
acquired assets from the larger
miners that were forced to divest
in a cash crunch. RBC analyst Ryan Latinovich says he is spending most
of his time with asset managers
talking about smaller companies
that have star potential. That is a
change from last year, when
investors were focused mostly on
the biggest players.
Alternative forms of capital from
the likes of private equity are no
longer popular.
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