Gold rally, Chinese demand a boon to Canadian miners – by Cecilia Jamasmie (Mining.com – July 30, 2020)

https://www.mining.com/

Canada could see a wave of new gold deals and mines built in the coming months and years, thanks to strong bullion prices and improved demand for metals from China, EY analysts believe.

According to the consultancy’s Canadian Mining Eye index — which tracks the performance of 100 Toronto Stock Exchange and TSX Venture Exchange mid-tier and junior mining companies with market capitalizations of between $240 million and $3.6 billion— local miners are likely to continue benefitting from gold’s upward trajectory.

Prices for the yellow metal increased by 11% in the March-June period this year after a 6% gain in the previous quarter.

The metal is expected to remain near historic highs on the back of US dollar weakness, government stimulus, geopolitical tensions and low interest rates, EY says.

That means that gold projects investors long shrugged off or ignored are suddenly back in reach for chief executives. IAMGOLD’s (TSX IMG), (NYSE: IAG) recent decision to move ahead with its Côté gold project in northern Ontario, Canada, is a case in point.

For the rest of this article: https://www.mining.com/gold-rally-chinese-demand-a-boon-to-canadian-miners/

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