Industry Analysis & Industry Trends
Operators in the Gold and Silver Ore Mining industry in Canada have exhibited growth over the five years to 2016. This growth has largely been driven by increasing production volumes of gold, as both gold and silver prices have fallen from historic highs during the period. Up until 2012, when gold and silver prices hit their peak, industry operators ramped up production to take advantage of high prices, driving up industry revenue. However, gold and silver prices have fallen in recent years. Furthermore, costs have increased for many industry operators, creating a challenging operating environment for small-scale companies. Over the next five years, M&A activity will likely continue as new mining projects are slow to enter production... purchase to read more
Industry Report - Industry Investment Chapter
The Gold and Silver Ore Mining industry is highly capital intensive, as mining companies must invest heavily in capital equipment to increase production, while labour requirements are relatively minimal. For every $1.00 allocated toward labour, an estimated $1.74 will be absorbed by capital costs. Wage costs are typically lower than depreciation charges, highlighting the importance of capital investment in the production process.
The industry's substantial capital expenditure arises from the nature of the mining process, which requires considerable investment in large-scale earth moving and processing equipment such as electric shovels and conveyors... purchase to read more