Canadian mining companies know how to beat market downturns

Four Canadian-based mining companies rank among the five largest metal streaming/royalty businesses in the world, reveals a PwC mining report. Those companies are:

Franco-Nevada,
Silver Wheaton,
Osisko Gold Royalties and
Sandstorm.

Read: Gold poised for growth

“These financial innovators were recently trading at an average price-to-net-asset value of 1.3x, compared with a value of 1.0x for members of the top-40 [global mining companies],” says the report. “Alternative financing companies […] to take advantage of this valuation gap to purchase royalties and metal streams at a substantial premium to the market, creating a win-win, especially during market downturns.”

The report also finds that exploration dollars poured into Canada at a faster rate than anywhere else in the world in 2016. Canada attracted 14% of the total global exploration budget; Australia was second with 13%, followed by the United States (7%).

Further, Canadian companies’ rising valuations kept pace with those of their international counterparts, with six Canadian-based miners making the global top 40: