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.