Gold and Silver Ore Mining in Canada Industry Market Research Report Now Available from IBISWorld

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Though investor sentiment has improved greatly since the recession, demand for gold and silver will continue to be strong as more conservative investors seek safe alternatives to equity markets. For these reasons, industry research firm IBISWorld has added a report on the Gold and Silver Ore Mining industry to its growing industry report collection.

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Increases in the world prices of gold and silver will bolster industry operators' profit margins.

Operators in the Gold and Silver Ore Mining industry in Canada have exhibited growth over the past five years. As investors flocked to the precious metals during the recession, rising gold and silver prices helped bolster the industry's performance and profitability over the period. “However, costs have been increasing for many industry operators, creating a challenging operating environment for small-scale companies,” according to IBISWorld Industry Analyst James Crompton. In the five years to 2014, industry revenue is anticipated to increase at an annualized rate of 5.9%.

The world price of gold is expected to increase at an annualized rate of 5.9% over the five years to 2014. However, the world price of gold fell 15.5% in 2013 and it is expected to fall 8.3% in 2014. As economic conditions have improved around the globe, gold and silver prices have eased. The world price of silver is projected to decrease by 15.8% in 2014; this follows drops of 11.7% and 23.4% in 2012 and 2013, respectively. Consequently, industry revenue is forecast to decrease by 14.1% in 2014 to $5.6 billion. “Though profitability remains strong for most large companies, smaller operators have experienced difficulties as prices have fallen rapidly,” says Crompton. Therefore, merger and acquisition activity has persisted over the past five years. For example, Agnico Eagle Mines Limited and Yamana Gold Inc.'s joint acquisition of Osisko Mining by June 2014 displays the competitive nature of the acquisition activity in the industry.

Industry revenue is projected to increase in the five years to 2019. Though investor sentiment has improved greatly since the recession, demand for gold and silver will continue to be strong as more conservative investors seek safe alternatives to equity markets. Merger and acquisition activity will likely continue over the next five years, as new mining projects are slow to enter production. The largest companies, Goldcorp and Agnico Eagle Mines Ltd., will likely continue competing for market share through acquisitions, as these companies have the scale and access to capital to aggressively pursue small-scale operations.

For more information, visit IBISWorld’s Gold and Silver Ore Mining in Canada industry report page.

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IBISWorld industry Report Key Topics

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 also can store and delay the sale of their output to speculate commodity price fluctuations.

Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalization & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US and Canadian industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.

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Gavin Smith
IBISWorld Inc.
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