Net capital raisings in British Columbia tumbled from $3.3 billion in 2011 to just $94 million in 2012 according to a new mining survey released today by PricewaterhouseCoopers.
The management firm released its report to coincide with BC Mining Week 2013.
The lack of financing was attributed to ". . . poor market conditions, which put a freeze on financing and other capital raises."
Commodity prices slid and economic growth slowed due to a deepening debt crisis in Europe.
Cash flow at BC companies decreased from $4 billion in 2011 to just $2.2 billion in 2012. Pre-tax net earnings fell 51% to $1.8 billion from $3.7 billion in 2011
While revenue was taking a hit, total mining expenditures were up in 2012: $9.2 billion compared to $8.9 billion.
Employment also rose by 12%. In 2011 the mining sector in BC employed 9,310 people and in 2012 it employed 10,419. The average salary increased from $115,700 to $121,900.
Gold was a bright spot with revenues up from $154 million to $275 million. The increase was due to new mines coming on line, such as Copper Mountain mine and New Afton. Many of BC's key commodities fell. Metallurgical coal revenue dropped from $4.7 billion to $3.5 billion. Copper concentrates were down $1.5 billion to $1.3 billion.
Other positives were the opening of New Gold Inc.'s New Afton mine near Kamloops and the slated openings of the Thompson Creek Metals Mount Milligan Project and the Imperial Metals Red Chris project. Mining projects will also receive a boost from the Northwest Transmission Line (NTL) currently under construction.
The break down of the province's' mining product in 2012 is below.
Graphs from PricewaterhouseCoopers