SMM11, July 7: Canadian miners fell in the three months to the end of September as gold, nickel, copper and zinc weakened, according to the latest report from consulting firm Ernst & Young.

Copper fell about 14 per cent after hitting a 3.5-year high in June, nickel fell 16 per cent over the same period, and rose 12 per cent in the second quarter. As a result, Ernst & Young's Canadian mining eye index (Canadian Mining Eye index) fell 12 per cent in the third quarter from a year earlier. The index is designed to track the performance of (Toronto Stock Exchange) 100 medium and small mining companies on the Toronto Stock Exchange.

Jay Patel, head of mining and metals trading at Ernst & Young Canada, said, "despite the fall in gold prices, most large gold companies want to end their operations this year with strong momentum. As a result of rising ore ratings and production, most senior companies have maintained this year's production guidance.

Looking ahead, experts say, gold prices are expected to benefit from continued trade tariffs imposed by the US. In addition, the team predicted that the upcoming seasonal demand for spot gold, mainly from China and India, could support the upward trajectory of gold prices. They point out that in the short term, the US is likely to raise interest rates again this year and three more in 2019, which is expected to strengthen the dollar and have a negative impact on gold prices.

Experts are optimistic about the future of basic metals. Copper prices are expected to rise due to insufficient supply, coupled with China's efforts to support infrastructure development in 2018. However, protectionism could have a potential impact on Chinese exports to the US, putting downward pressure on prices in the medium to long term.

Due to supply-side constraints, the outlook for zinc prices remains optimistic in 2018 and is likely to be balanced by 2019. The supply of rare earths is expected to continue to increase by 2020, in part because of the production or production of the Dugard River, the Greenfield Gamsberg mine in Vedanta, the New Century mine and Glencore's Lady Loretta mine.

When it comes to nickel prices, Ernst & Young expects nickel prices to rise because of strong demand for rechargeable batteries for electric vehicles and falling inventories by the end of the year. The latest "Eye of Mining" has undergone 13 ranking changes,

Ivanhoe Mining and OceanaGold are currently in the top 20. Lydian International, Barkerville Gold Mines, Mason Graphite, Bear Creek Mining, eCobalt Solutions, First Cobalt, West African Resources, Millennial Lithium, Klondex Mines, Arizona Mining and Dalradian Resources withdrew from the index and were replaced by the new companies highlighted in the table below.

(note: if copyright issues are involved, please contact SMM and we will deal with them in a timely manner.)