Being a potash producer could lack the status of being a gold producer, however we count on potash dominance to proceed. There are 7.7 billion individuals – all of whom have to eat – residing on our finite planet. Furthermore, the quantity of arable land is shrinking as a consequence of rising sea ranges, warming local weather and urbanization. Because the inhabitants continues to develop, potash will stay a key means to getting probably the most meals from our farmlands.
Gold and copper dominate
After Nutrien, the Prime 40 are dominated by gold and copper miners. Greater than half of this yr’s listing – 23 firms – are main gold miners. Three are copper-gold miners and 9 main copper miners. Collectively, they account for 87.5% of Canada’s largest revenue-generating miners. Each gold and copper had been winners general final yr, which noticed the covid-19 pandemic start in earnest in March 2020. The gold worth spiked above $2,000 per oz. final August, pushed by uncertainty across the pandemic and waves of stimulus spending globally. And whereas copper sunk to only above $2 per lb. final March, it soared to $3.50 by the tip of the yr and has hit $4.70 in 2021 – boding effectively for copper miners in subsequent yr’s Prime 40.
Persevering with with the Prime 40, gold miners occupy the subsequent two slots on our listing. Barrick Gold is No. 2 with revenues of C$17 billion, and Newmont is No. 3 with $15 billion. The file excessive costs for the yellow metallic in 2020 didn’t damage both of those firms, and with costs remaining robust in 2021, each will probably be close to the highest of the listing once more subsequent yr.
The one really diversified miner on our listing is Teck Assets, holding down the No. 4 spot with C$9 billion in revenues. The corporate reported gross sales final yr of 277,000 tonnes of copper (with a price of C$2.4 billion), 646,000 tonnes of zinc (C$2.7 billion), 22 million tonnes of steelmaking coal (C$3.3 billion), and 11.6 million barrels of blended bitumen (roughly C$432 million). Teck can also be a producer of germanium, indium, cadmium, silver, fertilizers, and industrial merchandise.
Rounding out the ten greatest income mills are copper and gold producers. At No. 5 is First Quantum Minerals with C$7 billion from each copper and gold gross sales. Then come three gold producers: No. 6 is Kinross Gold with C$5.6 billion; No. 7 is Agnico Eagle Mines with C$4.2 billion; and No. 8 is Kirkland Lake Gold with C$3.3 billion in revenues. Extra copper-gold producers observe: No. 9 Newcrest Mining with C$2.9 billion and No. 10 Lundin Mining with C$2.7 billion. All these firms preserve worldwide operations in all corners of the globe.
Whereas many of the different 30 miners on the listing are copper and gold producers, there’s additionally one uranium producer (Cameco at No. 13), two main silver producers (Pan American Silver at No. 14 and First Majestic Silver at No. 32), one iron ore producer (Champion Iron at No. 30), and a diamond miner (Mountain Province Diamond at No. 40).
As is customary, we’ve additionally created an inventory of 5 runners-up, together with new entrant: Lundin Gold.
Once more, this yr we’ve segmented the oilsands miners. Their lot will not be a cheerful one as oil costs tanked final yr on collapsing demand, and proceed to be below strain with a worldwide push away from fossil fuels and towards renewable power. The 4 oilsands producers for which we might segregate Alberta manufacturing had whole revenues of C$27.9 billion. Regardless of billions in revenues, three out of 4 had internet losses totalling C$5.7 billion this yr.
The Aussies are coming!
Trying to the longer term we see an inflow of Australian miners to Canada. The potential richness of our sources makes this a rustic price analyzing. The shift has already begun.
Newcrest Mining earned a spot at No. 9 by advantage of its 70% share and place as operator of the Crimson Chris copper mine in British Columbia. Undoubtedly, the majority of its revenues come from mines in Australia and Papua New Guinea, however it’s included for Crimson Chris and the truth that its shares now commerce on the TSX.
On the danger of leaving some out, listed here are a number of different Australian firms taking a eager curiosity in Canada. Auteco Minerals is exploring the previous Pickle Crow gold mine in northern Ontario; Santa Barbara purchased out Atlantic Gold in Nova Scotia; Evolution Mining now owns the Crimson Lake gold operations in Ontario which are due for a renaissance, and just lately purchased Battle North Gold for its Bateman undertaking; Galaxy Assets needs to mine lithium on the property it holds close to James Bay in northern Quebec; Indiana Assets is 50% proprietor and operator of the St. Stephen nickel-copper-cobalt property in New Brunswick; Austral Gold owns the Clapperton copper-molybdenum property in British Columbia; and Sayona Mining plans to amass North American Lithium and its Authier lithium carbonate undertaking in Quebec. As well as, Very important Metals has excessive hopes for the Nechalacho uncommon earths undertaking within the Northwest Territories, and Paladin Power nonetheless holds the Michelin uranium exploration property in Labrador, though growth is hampered by a ban on such initiatives within the province.
A number of Australian firms even have pursuits in coal initiatives on the east slopes of the Rocky Mountains. They had been granted leases final yr when Alberta gave the go-ahead to coal exploration and growth. The province has since finished an about-face, however the leases stay legitimate. What is going to finally occur stays unclear.
The environmental evaluation panel for the Grassy Mountain colliery close to Cranbrook, B.C., just lately gave that proposal the thumbs down. The property is finally owned by Hancock Prospecting, headed by Australia’s richest lady, Gina Rinehart. Additionally in B.C. is the proposed Telkwa coal mine close to the city of the identical identify and 90% owned by Allegiance Coal, one other Australian firm.
Regardless of the outcomes of the person Canadian initiatives during which they’re , watch to see if extra Australian firms discover their approach onto future Prime 40 Canadian miners lists.
The tremendous print
We acknowledge that revenues are an imperfect approach of firms, as they low cost the worth of close to time period expansions and growth initiatives. For the reason that cutoff for our Prime 40 may be shut, we’ve additionally included a runners-up desk to spotlight different firms producing robust revenues. Please see additionally the standards for our Prime 40 eligibility, which is unchanged from previous years.
Variations in reported income figures between this yr and final are attributable to completely different trade charges used to transform U.S. greenback figures for every year. For comparability functions, observe that money movement from operations is calculated after modifications in working capital.
Monetary outcomes are largely impacted by commodity costs and trade charges. We use the Financial institution of Canada’s trade fee when changing U.S. to Canadian {dollars}: for 2020 the common was $1.00 for C$1.34. And since so a lot of our Prime 40 miners are gold producers, for reference the common worth of gold in 2020 was $1,770 per ounce, in comparison with $1,393 in 2019.
HOW WE CHOOSE THE TOP 40
To be eligible for CMJ’s Prime 40 Canadian miners listing, firms should meet two of the next three standards:
1 Be domiciled in Canada.
2 Commerce on a Canadian inventory trade.
3 Have a major share of an
working mine or superior
growth in Canada.
Generally we’ve been tripped up and non-Canadian miners shave slipped onto the listing. Nonetheless, we’ve put further effort into checking the eligibility of all of the miners on the present listing. We stay open to the ideas of our readers.
(This text first appeared within the Canadian Mining Journal)
