According to an Ernst and Young report released on August 24,
2015, the Canadian Mining Eye index experienced a 4% gain in Q2
2015, as compared to a 1% loss in Q1 2015. This increase was the
first quarterly gain for the index since Q2 2014. While the
quarterly results in the sector reported by EY were not all
positive, the gain is certainly a welcome development.
EY's Canadian Mining Eye index tracks the performance of 100
TSX and TSX Venture mid-tier and junior companies with market caps
generally between CDN$100m and CDN$1.7bn. Q2 saw the Canadian
Mining Eye index outperform the S&P/TSX Composite index, which
instead fell 2%, and the London Metal Exchange index which lost 5%
for the quarter. According to the EY report, the main source of the
gain can be attributed to certain companies which saw positive
financial results, higher production data, accretive acquisitions
and good progress on projects. EY also reports that M&A
activity in the Canadian mining sector remained steady in Q2, made
up of synergy-enhancing consolidations and dispositions by junior
companies feeling the cash crunch.
While the Canadian Mining Eye index saw a jump, metal prices are
not seeing as much forward momentum, with gold falling 2% from Q1,
copper down 5%, nickel losing 3% and lead dropping 5%. The EY
report points to worries surrounding China's economy, plagued
by debt and falling property prices, as well as the Greek debt
crisis, as contributing to the decline in metal prices. Gold prices
were also particularly affected by a strong US dollar and the
possibility of a raise in interest rates from the US Federal
Looking ahead to the second half of 2015, EY predicts that
mining equities in Canada will remain quiet and metal prices are
expected to continue to struggle due to sustained pressure from the
fledgling Chinese market. M&A activity is likely to be made up
of strategic consolidations and companies seeking investment
opportunities while companies are expected to keep a tight lid on
their capital expenditures. Whether these factors will allow for
increased gains on the Canadian Mining Eye index will be something
to watch in the second half of 2015.
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Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
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