2018 was a difficult year for Canadian mining companies. The aggregate valuation of TSX-listed miners declined by 12.7%, while equity capital raised by these companies declined by 36% from the previous year’s total. In this environment, new financings and deals have been scarce, but there is reason to believe that this trend might change in 2019, according to a recent publication by PwC.
A number of factors support the general prediction of increased M&A activity among TSX-listed mining companies. These factors include:
- Increasing commodities prices. Spot prices for based and precious metals decreased across the board in 2018. However,