Dig deep: Falling gold prices will cut into selling prices and profit margins

Operators in the Gold and Silver Ore Mining industry in Ontario are engaged in mining, beneficiating or otherwise preparing gold and silver ore. Revenue is primarily linked with the production and shipment volumes of gold and silver in a given year alongside the prices of these goods, which are subject to global supply and demand conditions. The industry has experienced growth despite headwinds in global commodity markets over the five years to 2019. The industry's structure has changed slightly over the past five years, as some new operators have chosen to enter the industry while some of the largest players have lost market share. Over the five years to 2024, industry growth is forecast to continue, albeit at a decelerated rate...read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 14-19
4.5%
Forecast Growth 19-24
Profit
Employment
7,843
Businesses
10

Industry Threats & Opportunities

  • Gold prices are forecast to fall, which will cut into selling prices and profit margins
  • Industry Report - Industry Locations Chapter

    As at the national level for any mineral or metal, the distribution of provincial mines is consistent with the location of metal deposits across the country. There are 18 provincial gold mines operating as of early 2019, although a new mine will become operational later in the year.Several of the provincial mines, such as Goldcorp Inc.'s (Goldcorp) Red Lake and Musselwhite mines, are scattered in the northwest region of the state. There are also several gold mines on the northeastern shore of Lake Superior, including Barrick Gold Corporation's Hemlo mine complex.The vast majority of provincial gold mines are located in the Timmins and Kirkland Lake region. This region is home to 10 separate mines, as well as numerous mines that have closed down in recent years. For...purchase to read more.

    Additional Insights for the Gold & Silver Ore Mining in Ontario Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Gold & Silver Ore Mining in Ontario Industry are

  • Ability to accommodate environmental requirements
  • Availability of resource
  • Ability to forward sell production when appropriate
  • IBISWorld analysts also discuss how external factors such as World price of gold and Canadian effective exchange rate index in the Gold & Silver Ore Mining in Ontario industry impact industry performance..

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    What's in this report

    What is the Gold & Silver Ore Mining in Ontario Industry?

    This industry mines and prepares ores valued primarily for their gold or silver content. Some companies process ore into concentrate or bullion on-site, while others maintain refining facilities abroad. Companies in this industry can also store and delay the sale of their output to speculate commodity price fluctuations.

    Industry Products
  • Gold
  • Silver
  • Industry Activities
  • Gold ore mining
  • Silver ore mining
  • Gold ore beneficiation
  • Silver ore beneficiation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of gold
  • Canadian effective exchange rate index
  • Consumer Confidence Index
  • World price of silver

  • Current Performance
    Industry Outlook
    Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Gold & Silver Ore Mining in Ontario Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Jewellery Manufacturing in Canada
  • Copper, Zinc & Lead Refining in Canada

  • Key Selling Industries
  • Environmental Consulting in Canada
  • Forklift & Conveyor Manufacturing in Canada
  • Geophysical Services in Canada
  • Mining, Oil & Gas Machinery Manufacturing in Canada

  • Products & Services
  • Gold
  • Silver
  • Chart: Gold & Silver Ore Mining in Ontario Industry Products and Services Segmentation

  • Major Markets
  • Jewellery manufacturing
  • Investment purposes
  • Technology and industrial applications
  • Central bank purchases
  • Chart: Major Market Segmentation for the Gold & Silver Ore Mining in Ontario Industry

  • Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Chart: Cost Structure Benchmarking – Sector vs Gold & Silver Ore Mining in Ontario

  • Basis of Competition
    Barriers to Entry
    Goldcorp Inc., Detour Gold Corporation, Kirkland Lake Gold Ltd., Barrick Gold Corporation,
  • Table: Goldcorp Inc. - financial performance
  • Table: Detour Gold Corporation - financial performance
  • Table: Kirkland Lake Gold Ltd. - financial performance
  • Table: Barrick Gold Corporation - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Gold & Silver Ore Mining in Ontario Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Gold & Silver Ore Mining in Ontario Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • World price of gold (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bullion
  • Gold cast into ingots, coins or bars, typically with a purity of 99.9% gold, valued by its mass and purity.
  • Concentrate
  • A very fine, powder-like product containing the valuable ore mineral from which most of the waste mineral has been eliminated.
  • Dore
  • After being minted, this first stage in the purification process of the gold ore produces a cast bar (gold ore) that is about 90.0% gold.
  • Troy Ounce
  • A unit of imperial measure most commonly used to gauge the weight of precious metals and defined as 0.0311034768 kg = 31.1034768 g.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Gold & Silver Ore Mining in Ontario market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
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    This report on Gold & Silver Ore Mining in Ontario:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Gold & Silver Ore Mining in Ontario market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Gold & Silver Ore Mining in Ontario, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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