Monthly Archives: March 2016

Boards must re-up on responsibility

Most Canadian mining management has kept pace with corporate responsibility’s growth and complexity. But the makeup of mining boards has not. To help: a look at the new skills required and how to find directors that have them
By Craig Ford
March 6th, 2016

In the business of mining resource development, the past decade has seen a dramatic rise in the scope and complexity of corporate responsibility issues. This has been driven by two primary factors. First, societal expectations of business and especially resource … Continue reading

Posted in Handbook | Tagged , ,

Dilution for a rainy day

The more commodities drop, the clearer it is which companies factored the strategic risk of a slump into their actions back in the boom. Those that contained costs, built reserves and used equity for expansion then, are riding high today riding out the gloom
By John Caldwell
March 6th, 2016

On September 26, 2012, gold was trading at US$1,778.00 per ounce, close to its all-time high. That same day, silver was at US$33.93 an ounce and a pound of copper was US$3.74. Fast-forward 39 months to the start of this … Continue reading

Posted in Views | Tagged ,

Parents’ subsidiary liabilities hit home

Hudbay, Nevsun, Chevron...multiple Canadian resource companies are now facing suits in Canadian courts for the actions of their offshore subsidiaries. It’s time other firms took steps to address their own risk
By Poonam Puri
With Luis Sarabia
March 6th, 2016

In 2013, a group of indigenous Guatemalan plaintiffs commenced legal proceedings against Canadian mining giant Hudbay Minerals Inc. (TSX:HBM), alleging that security personnel hired by Hudbay’s wholly owned subsidiary in Guatemala perpetrated violent human rights abuses when carrying out security … Continue reading

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Looking back on the year ahead

Wherein we embark on a short, time-traveling leap to the end of 2016 to take a look back at what went down—or up—in the mining sector in the year that was...or soon might be
By Robert Olsen
With Jeremy South
March 6th, 2016

Have you had enough of bad news in the mining sector and predictions for more of the same for the rest of 2016? Ever find yourself wishing you could just hit a switch and fast-forward another year? You’re not alone. … Continue reading

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Road show to renewal

Facing a long decline in its business, the TSX Venture Exchange kicked off 2016 by publishing details of a major “revitalization” plan. Then it took its pledge of savings and simplification on a cross-country, town-hall tour. Audiences listened. But will the business return?
By Brian Banks
March 4th, 2016

Imagine a prototypical issuer. Call him Issuer XYZ. Issuer XYZ runs a small TSX-V junior resources company that, like so many in recent years, is barely scraping by. He’s worked an angle on a modest deal, pays the exchange the … Continue reading

Posted in Ticker | Tagged , , ,

Will the giants inherit the earth?

Grim as the economics of mining and minerals are for everyone right now, looking ahead, things are lining up strongly in favour of the industry’s biggest players. Expect them to dominate increasingly large swaths of the business for years to come
By Ian McGugan
March 4th, 2016

After four years of relentlessly bad news, the one bright spot for the mining industry in 2016 is that there are no high hopes left to disappoint. The compelling question that hangs over the sector is no longer how bad … Continue reading

Posted in Economy, Handbook | Tagged

The end of coal?

Face it. Even putting a question mark on that headline is just a technicality. As long as the world needs steel, there will be a cyclical market for metallurgical coal. But when it comes to the business of mining, moving and burning coal for energy, its demise is no longer a matter of if, but when
By John Greenwood
March 4th, 2016

It had been a brutal quarter for Teck Resources Ltd. (TSX:TCK.B) and Don Lindsay, the chief executive, speaking on a scheduled earnings call with analysts in late October was doing his best to put a bright face on things. Although … Continue reading

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Move mountains? Easy. Boost diversity? Oof!

It’s proxy season for many Canadian issuers, and that means the second year of “comply or explain” disclosure on diversity. In year one, mining companies lagged with the most male-only boards. Will anything change in year two?
By Brenda Bouw
March 4th, 2016

Alex Johnston has seen a dramatic change in the conversations she’s been having about the lack of women leaders in the mining industry. Five or six years ago, when the now former executive director of women’s advocacy group Catalyst Canada … Continue reading

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Five ways to someday

Even as the mining industry languors, change is afoot. And when the next rally is in high gear, it’s a sure bet some companies, practices and even conventional mining logic will have changed. We’ll still need a commodities comeback to make it happen, but it won’t be a carbon copy of the last boom. Here’s our look at five areas of fresh thinking that will define the next cycle
By Jim Middlemiss
March 4th, 2016

Michael Johnston says one thing he has learned in his 20-plus years of mining is that “you can’t manufacture grade. The ore body is what it is. Generally, it is something you have very little control over.” But what mining … Continue reading

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In vogue for 2016? Pay cuts

Their share prices have been falling for years. Now more mining boards, having signed off on cuts to everything else, are wondering if it’s time executive pay followed suit
By Paul Brent
March 4th, 2016

Mining companies are accustomed to working with long lead times: potential plays can take years to assess, mines can take a decade to develop and operate for decades more while commodity cycles rise and fall. This year, as those companies’ … Continue reading

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Jim Carter: Do you buy value, or build it?

In The Director’s Chair with David W. Anderson: Jim Carter may sit on four boards, in different sectors, but when it comes to creating value and long-term success, his measuring stick stays the same: get the culture right and results will follow
March 4th, 2016

Mining executives and directors, Jim Carter feels your pain. The former president of Syncrude Canada, now a director on four corporate boards—Finning International, Brand Energy, Alberta Treasury Branch Financial and Irving Oil—has navigated his share of industry slumps, and his … Continue reading

Posted in The Director's Chair | Tagged , , , ,

An uneasy duty

It’s been 12 years since the landmark ruling that established the Crown’s “duty to consult” with aboriginal groups. Most mining and resource projects navigate this process, but it’s hardly routine. More than growing pains, industry says governments aren’t doing their job
By Kerry Banks
March 4th, 2016

In November 2015, closing arguments were heard in a lawsuit that may have important consequences for the Canadian mining industry. Northern Superior Resources Inc. (TSX-V:SUP), a Sudbury, Ont.-based junior exploration outfit, is seeking $25 million in compensation from the Ontario … Continue reading

Posted in Features, Top Stories | Tagged , , , , , , , , , , , , , , ,

It’s buying time [again]

Insider: Ross Beaty
March 4th, 2016

Who: Ross Beaty, founder and chairman of Pan American Silver Corp. (TSX:PAA), founder and executive chairman of renewable energy company Alterra Power Corp. (TSX:AXY) and a lauded geologist and lawyer with 40-plus years of mining industry experience. Involvement: Beaty has … Continue reading

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