"Gold Shoots" At Last For Mining Sector Financing

2016 opened with the mining industry in Canada and globally facing continued challenges in the form of depressed commodity prices and difficult financing markets. While the capital markets have broadly acknowledged that commodity prices are poised to be "lower for longer," the first half of the year has seen many commodity prices stage a partial recovery and the capital markets have rewarded some mining sector participants.

The result has been a convergence of trends that should see increased activity in the sector and a number of key questions to be answered over the balance of 2016, including whether the rebound in the gold sector will be sustained and lead to capital markets and M&A activity opening up for other commodities.