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  • Pages
  • Editions
01 Cover
02 Welcome Letter / Sections
03 Article & Interview Directory
04 Section 1: Introduction
05 Introduction to Mining in Ontario
06 Government of Ontario Interview
07 Ontario Mining Association (OMA) Interview
08 Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Interview
09 Navigating Uncertainty
10 Ormston List Frawley LLP Interview
11 PDAC Interview
12 Section 2: Production and Development in Ontario
13 Production in Ontario
14 Map of Ontario Mines
15 Newmont Interview
16 Barrick Gold Interview
17 Wesdome Gold Mines Interview
18 Alamos Gold Interview
19 Evolution Mining Interview
20 A New Wave of Ontario Gold Mines
21 Argonaut Gold Interview
22 Equinox Gold Interview
23 Industry Thoughts: Production and Development in Ontario
24 Section 3: Mining Finance
25 Mining Finance and Investment
26 Insights from the Toronto Stock Exchange
27 PearTree Securities Interview
28 Triple Flag Interview
29 Red Cloud Securities Interview
30 IBK Capital Interview
31 Stifel Interview
32 Roth Canada Interview
33 Industry Thoughts: Mining Finance Trends
34 Section 4: Toronto's Global Reach
35 Toronto’s Global Reach
36 Toronto's Global Reach Map
37 Rupert Resources Interview
38 Eloro Resources Interview
39 Industry Thoughts: Global Operations Based in Ontario
40 Eyes on Latin America
41 Torex Gold Resources Interview
42 Minera Alamos Interview
43 Sable Resources Interview
44 Section 5: Junior Exploration
45 Junior Exploration
46 Great Bear Resources Interview
47 Exploring Across Canada
48 O3 Mining Interview
49 Purepoint Uranium Group Interview
50 ALX Resources Interview
51 Industry Thoughts: Gold Juniors Have Their Say
52 Gold Juniors Replacing Depleting Resources
53 Moneta Gold Interview
54 Goldshore Resources Interview
55 Galleon Gold Interview
56 Element79 Gold Interview
57 Signature Resources Interview
58 Section 6: ESG and the Battery Materials Supply Chain
59 Transition Metals on the Rise
60 Conquest Resources Interview
61 Generation Mining Interview
62 Inventus Mining Interview
63 Noble Mineral Exploration Interview
64 The Move to Combat Climate Change Gathers Pace
65 Insights from Onyen Corporation
66 Thorn Associates Interview
67 Leading the Charge
68 Electra Battery Materials Interview
69 Frontier Lithium Interview
70 Industry Thoughts: Entering The Transition Economy
71 The Battery Material Supply Chain
72 ION Energy Interview
73 Clean Air Metals Interview
74 Section 7: Services, Technology and Innovation
75 Engineering, Construction & Consultancies
76 Ausenco Interview
77 Cementation Americas Interview
78 PCL Construction Interview
79 Redpath Mining Interview
80 Technological Advancements & Innovation
81 Industry Thoughts: Canadian Associations
82 EY Interview
83 Maestro Digital Mine Interview
84 Centric Mining Systems Interview
85 Industry Thoughts: OEMs Have Their Say
86 Drone Delivery Canada Interview
87 Sofvie Interview
88 Novamera Interview
89 Industry Thoughts: Paving the Way for ESG Reporting
90 Section 8: Company Profiles
91 Wesdome Company Profile
92 ION Energy Company Profile
93 PearTree Securities Company Profile
94 Ormston List Frawley Company Profile
95 Maestro Digital Mine Company Profile
96 Sofvie Company Profile
97 Credits

Introduction to Mining in Ontario

Evolving mining practices

During this volatile time, the agility of the Ontario mining sector has allowed it to retain a strong position through high levels of managerial discipline and caution. Rising commodity prices have allowed for greater production cashflows and balance sheets have become stronger. Majors have amassed capital reserves and have liquidity to continue exploring, developing and producing. However, the junior sector has continued to face challenges with a highly scrutinous investor base and supply-chain delays.

In the past 20 months, the industry has remained remarkably active, with many exciting transactions taking place. Perhaps the most notable is the merger of Agnico Eagle and Kirkland Lake Gold. On February 8th, 2022, the merger was completed, and the company now has approximately US$2.3 billion of available liquidity, with a mineral reserve base of 48 million ounces of gold (oz Au). With a large exploration and development pipeline, Agnico Eagle Mines is primed for continued and sustainable growth, as is the Ontario mining sector as a whole.

The Ring of Fire has come back into the spotlight with a thrilling bidding war for Noront Resources between industry giant BHP Billiton and Wyloo Metals, now owned by one of Australia’s largest private companies, Tattarang. It was only after several months of discussions that the winner from down-under was announced, with BHP withdrawing from the race.

The victory of Australian billionaire, Andrew “Twiggy” Forrest, over the world’s largest mining company, BHP, may have been seen as a surprise in some quarters. However, Wyloo’s previous foothold in the shares of Noront, combined with its determination to expand its portfolio of nickel properties, caused BHP to walk away from the deal.

“The sector is positioning itself to address increasing demand from rising urbanization and population growth, along with the crucial contribution of materials needed for the low carbon economy transition.”

Louise Pearce, Global Mining Director, ERM

Equinox and Orion Mine Finance Group’s Greenstone mine has started construction and will be one of the largest in Canada, costing about US$1.23 billion. It is expected to produce more than 5 million oz Au, with 400,000 oz/y for the first five years, and have a 14-year mine life. Construction at Argonaut’s Magino is on-going and IAMGOLD’s Cotê project construction is on-schedule, with commercial production expected H2 2023.

M&A has been on the rise throughout 2021, with companies looking to consolidate whole mining regions. Single-asset companies that have struggled to replenish reserves through the last mining cycle given low commodity prices and capital strains are now keen to partner with stronger players. Lessons from previous M&A deals and retaining shareholder interest, given many distractions such as cryptocurrencies and new technologies, will be more important than ever to avoid high premiums and debt, which stifled the industry in years past. The Agnico/Kirkland and Wyloo/Noront deals could be the first in a wave of M&A activity necessary to consolidate projects.

Toronto’s financial markets have witnessed mining take a prominent place in the TSX30 – a ranking of the top 30 performers on the Toronto Stock Exchange over a three-year period based on dividend-adjusted share price appreciation. TSXV to TSX graduation rates have also risen in 2021, and mining finance firms including PearTree Securities, Triple Flag Precious Metals, Haywood Securities, Stifel GMP, IBK Capital and Roth Canada have had their hands full with transactions, continuously finding innovative ways for Canadian mining companies to access larger pools of capital.

"A key driver for gold is inflation and with the current inflationary pressures around the world, we expect gold to attract more attention alongside base metals, the building blocks of industrial society, which will be required to develop resilient infrastructure. Copper and nickel get the best of both worlds as base and Future Metals."

Keith Spence, CEO & Partner, Global Mining Capital Corp.

The rapid printing of money throughout the pandemic and increased demand have led to challenges regarding inflationary costs. The hardest hit companies in the sector have been those in the midst of building new projects, with companies witnessing steep cost increases to their operations also due to the Canadian dollar gaining strength. "You see projects that have been inflated by up to 40%,” said Renaud Adams, president and CEO, New Gold.

With mining sitting at the core of the planet’s future, low-carbon targets have rippled across the value chain. PwC’s 2021 CEO Survey saw 76% of global mining and metals executives raise concerns regarding the environment, up 5% from 2020. The importance of investing in ESG and sustainability has given rise to new and innovative ESG platforms looking to support the sector through simplifying information and streamlining international requirements. There has never been a more important time to highlight the positive impact of the mining industry on all businesses across the globe. “Funds are much more rigorous on their ESG measurements and demands, and it is a trend that will only continue,” said Alex Pernin, CEO, Star Royalties.

A critical acceleration on the importance of Industry 4.0 processes fuelled by Covid has been observed in the past few years. Digital and technological transformation is a key priority for mining CEOs to become more efficient, with a strong interest in collaborating across industry sectors to find innovative solutions. As a swift response to the pandemic, new communications processes and protective gear entered the market, with mining companies taking a leading role in supporting rural communities through Covid. The Ontario mining sector continues paving the way globally for protocols, community relations, safety and efficiency.

Image courtesy of Jan Weber on Unsplash

Next:

Interview: Government of Ontario