No end in sight for mining sector gloomy state: report
The first two months of 2015 failed miserably to dispel gloomy market conditions affecting the global mining industry, the latest study by SNL Metals & Mining published Wednesday shows.
Based on its own Metals & Mining’s Pipeline Activity Index (PAI), which monitors the health of the sector, SNL concludes that despite some isolated signs of improvement, key sectors such as copper, gold, silver, cobalt, molybdenum, nickel, platinum and zinc experienced major falls.
The bad news doesn’t end there. According to the report there are “early indications” suggesting the industry's value will resume its downward trajectory this month.
Financing by junior and intermediate companies — those with annual revenue of less than US$500 million — was pretty much the only major improvement. According to SNL the indicator went up in February, after a disappointing first month of the year. There were 21 financings of over US$2 million in the SNL database during February, amounting to a total of US$642.1 million. Of this total, 88% was from share issues, and companies listed on the TSX Group accounted for fully 95% of the total.