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ARTICLE · 08 JUNE 2015

Have We Reached The Bottom Yet?

Gowling WLG
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As we face the fourth consecutive year of declining commodity prices, we continue to ask ourselves, have we reached the bottom yet?

CanadaEnergy and Natural Resources

As we face the fourth consecutive year of declining commodity prices, we continue to ask ourselves, have we reached the bottom yet? As the mining industry is historically cyclical, we have been bracing ourselves for the eventual rebound in the markets.

Despite the doom and gloom, industry experts are cautiously optimistic. In the fall of 2014, Dundee Capital Markets predicted that mining stocks would outperform the S&P TSX index in 2015. Although mining stocks are still in a slump, some experts are hopeful that mining companies will benefit from the weakened Canadian dollar and dramatically lower energy prices.

At the Prospectors and Developers Association of Canada (PDAC) conference in Toronto in March, PDAC President Rod Thomas surmised that sentiment is definitely more upbeat and the market may be showing signs of a turnaround.

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