Although the mining industry continues to battle a lack of investment and tumbling metal prices, the tough times have produced a unique opportunity for mid-tier companies as good projects are being shed by major firms looking to streamline their operations. That’s one of the themes highlighted in EY’s new second-quarter Canadian Mining Eye report, a quarterly document that tracks the performance of 100 mining companies, to be released this week. According to the report, the selling of “non-core assets” – projects deemed less important than potentially larger or more advanced deposits – is a strategy major companies such as BHP Billiton (NYSE:ADR) and Rio Tinto (NYSE:RIO) are using to weather the sector’s current unstable period. The buyers for those projects are mid-tier companies – smaller firms involved in production – looking to add to a well-researched, well-developed deposit.
Posted on: Wed, 07 Aug 2013 12:29:48 +0000
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