(Kitco News) – While 2018 has not been a positive year for the mining sector, the rumors of its demise are greatly exaggerated, according to one financing executive.
Although the sector has struggled to find investment capital, the Canadian mining sector continues to dominate deal flow, raising the most money out of any other sector in Canada, Chad Williams, president of Red Cloud Klondike Strike, said in a presentation Xplor, a Quebec annual mining conference. He also noted that so far this year the mining sector has seen deals valued at $5 billion.
“The value of the deals made in the mining space far outstrip what we’ve seen in the marijuana market,” he said. “Even though it has been a difficult year, companies are making money even in a bear market,. There is hope going forward”
However, Williams added that the downside for the mining sector is that most of the financing is coming from other mining companies. Generalist investors are still avoiding the marketplace. Business-to-Business capital in the mining sector increased 78% from the previous year.
Another issue William raised is that the deals are being spread out among small companies that don’t have viable projects.
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