50 LEXPERT MAGAZINE
|
MARCH 2017
FEATURE
IN A STEREOTYPE
that goes back to the original Gold Rush, it is gener-
ally said that business people in the mining sector are optimists; they have to
be, given the risks they take on. Recent years have surely tested that optimism,
and yet in 2016 and now in first quarter 2017, there are hopeful signs, even
murmurings of a resurgence in the market. We asked Canadian lawyers who
serve mining company clients to weigh in as to whether this was real or "make-
it-so" thinking.
John Turner of Fasken Martineau LLP noted: "Last year, particularly the
first half, was dominated by equity financings in the precious metals sector.
e second half was more about M&A and that is continuing and picking up
pace in 2017. ere was definitely an increase in interest from China, and the
election of [US] President Donald Trump seemed to improve the outlook for
base metals and uranium in particular."
"However," cautioned Turner, "there are issues around value. With mining
companies having worked hard to improve their balance sheets over the past
few years, shareholders have little appetite to see companies repeat the value
destructive acquisitions we saw during the super cycle."
Jay Kellerman, Toronto managing partner of Stikeman Elliott LLP, catego-
rized the recent deals in the mining market: "Given the significant resurgence
in commodity prices since 2015, there has been increased interest in the min-
ing sector." He pointed to "increased corporate finance work as companies are
able to actually raise money; the beginnings of an IPO market; ongoing M&A
activity; and a number of privatizations."
Hope springs
eternal for miners
as the market picks
up for some, but not
all, metals. Lawyers
in the sector, however,
suggest we're far
from a full recovery
BY JEAN CUMMING
Resurgence?
Mining
PHOTO:
REUTERS
