Canada global leader in mining and metal deals: Ernst & Young
by Canadian Manufacturing Daily Staff
Growth in Canada despite global metal and mining market slowdown
Vancouver—Canada has regained its title as the top target destination in the global mining and metals sector by total deal value in the first quarter of 2012.
Advisory firm Ernst & Young said Canada is continuing its ascent to the top despite a global mining and metals slowdown, with volume and value decreases of 34% and 20%, respectively, year over year.
A strong pipeline indicates mining company are hungry to do deals, according to the firm, with mining and metal companies completing 10 megadeals (deals worth over US $1-billion) in the first quarter of the year—twice as many as the same period in 2011.
Despite the number of megadeals, the market is showing a lower average deal size.
According to Ernst & Young, the global market is reflecting a growing interest in exploration projects and a scarce number of large projects, with an average deal size of US $130-million for the quarter compared to US $134-million in the first quarter of 2011.