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Improved Credit Availability Up For Mining Companies For 2014 – EYWednesday December 18, 2013 1:59 PM

Ernst & Young’s Capital Confidence Barometer: Mining & Metals Sector report concludes executives, within the sector that have been surveyed, see improved credit availability to help drive momentum in 2014; according to the data, 55% of companies are focused on growth, compared to 38% in 2012. “Transactions in the mining and metals industry have dropped considerably over the last year as companies struggled with capital allocation and access to capital challenges,” says Bruce Sprague, EY’s Canadian mining and metals leader. “Deal volume and value have fallen 36.9% and 58.1%, respectively, year over year in Canada alone. Now it looks as though that tide may be turning.” The report shows 47% of mining and metals companies believe credit availability is improving in the sector and 72% believe the global economy is improving compared to 57% six months ago. The report also shows more of an openness for investment decisions on growth and the possibility of more M&A. “We’re beginning to see companies slowly shift their focus back to growth,” says Sprague. “Just under half of survey respondents plan to invest capital in the year ahead. And another 24% plan to pursue an acquisition. But optimism isn’t necessarily translating into the closing of finance arrangements just yet.”

By Alex Létourneau of Kitco News; [email protected]