/Posthaste: Gold emerges as Canada’s new investment magnet amid merger mania

Posthaste: Gold emerges as Canada’s new investment magnet amid merger mania

Good Morning!

Gold is Canada’s new investment magnet as a number of foreign companies circle around the country’s mining assets and companies, drawn by a combination of strong regulatory environment, unrealized potential and prospects of higher commodity prices.

Zijin Mining Group Co Ltd , one of China’s biggest gold miners, said this morning that it’s buying Canadian miner Continental Gold Inc. for $1.33 billion. The $5.50 per share price tag in cash for Continental, is a premium of about 13 per cent to the company’s closing price on Friday.

Last month, Australia’s Evolution Mining Ltd agreed to buy Canadian gold mining complex Red Lake from Newmont Goldcorp Corp for $375 million. Earlier this year, Australia’s St. Barbara Ltd. bought Vancouver’s Atlantic Gold Corp. for $722-million and Australia’s largest gold company Newcrest Mining Corp. spent S$806-million for a majority stake in Red Chris, a gold and copper mine by Imperial Metal Corp.

Collectively, Canadian industrial metals and mining sectors have attracted $20 billion from the Asia Pacific alone over the past 15 years, according to a new report by Asia Pacific Foundation. The region has emerged as a major investment source for Canada over the years, and has diversified away from oil and gas resources.

“Canada needs to continue to leverage its strengths and build stronger ties with the region in the future in order to improve market access and position itself as an important investor in and investment recipient from the diverse economies that make up the Asia Pacific,” the APF said in a recent report.

Here’s what you need to know this morning:

  • Statistics Canada to release gross domestic product figures for September and the third quarter
  • Prime Minister Justin Trudeau Minister will meet with Mexico Undersecretary for North America, Jesus Seade in Ottawa
  • Ontario Power Generation, Nordion Inc., and Energy Minister Greg Rickfordmake an announcement regarding medical isotopes in Courtise, Ont.
  • United Conservative Party annual general meeting in Calgary
  • Bennett Jones Business Forum at Lake Louise, Alta.
  • Metro Vancouver youth climate strikers hold “FutureFest” to demonstrate alternatives to consumerism through actions such as a mall flash mob, community clothing swap and street activities

Canada’s economy is deeply flawed, but it appears to have at least one characteristic that will keep it in the big leagues: resiliency, writes Kevin Carmichael.

“Gross domestic product grew at an annual rate of 1.3 per cent in the third quarter, Statistics Canada reported on Friday. That should mute the recession talk, while at the same time bolstering the arguments of those who say Canada needs to work on its competitiveness,” Carmichael wrote. “The Bank of Canada reckons the economy can run at an annualized pace of about 1.7 per cent without overheating, so clearly there’s some work to do.” Read the full story here.


— Please send your news, comments and stories to [email protected]. — Yadullah Hussain @yad_Fpenergy

With files from The Canadian Press, Thomson Reuters and Bloomberg


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