Canadian Mining Eye down in Q3, uncertainty persists

Canadian Mining EyeQ3 2015

The Canadian Mining Eye index declined 17% during Q3 2015, compared to a 4% gain in Q2 2015. The Canadian Mining Eye index underperformed the S&P/ TSX Composite index which slipped 9% during the quarter. The London Metal Exchange index (LMEX) declined 9% over the quarter.

The S&P/TSX Composite Metals and Mining index witnessed a significant plunge of 26% due to extremely bearish sentiment during the quarter. Stock prices remained volatile, mirroring the movement in gold prices. Canadian mining equities continue to face downward pressure due to a fall in metal prices, weak macro-economic backdrop and weak

Chinese demand. Canadian companies in this sector continue to focus on their core businesses by disposing of non-core assets and managing costs. Some companies showed steady progress developing their planned projects.

Majors experienced a fall of 26% in Q3 2015, compared to a 4% decline in Q2 2015, indicating weak investor confidence on a global macroeconomic outlook. Companies with a focus on margin protection continue to manage costs effectively while looking to improve productivity. With the US dollar strengthening against the Canadian dollar (7% in 3Q 2015), Canadian miners are expected to benefit as commodities

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Canadian Mining Eye index and peers, last 12 months

Source: EY, Thomson Datastream

Canadian Mining Eye UK Mining Eye (rebased)

FTSE All Share Mining (rebased) S&P/TSX Composite Metals & Mining (rebased)

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Canadian Mining Eye index, gold, copper and LME Index over Q3 2015

Canadian Mining Eye LMEX Index (rebased) Gold (rebased) Copper (rebased)

Source: EY, Thomson Datastream

are traded in US dollars whereas production costs are incurred in Canadian dollars. Companies remained cautious about their capital spending and focused on rigorous cost control measures and productivity improvements.

• The UK Mining Eye performed marginally better than the Canadian Mining Eye, losing 15% during Q3, and the FTSE Miners Index which fell 32% during Q3.

• Gold prices decreased further by 5% in Q3 2015 after a 2% decline in Q2 2015. Gold started weak in the beginning of the quarter and, although it recovered slightly in the middle, it continued to decline at the end of the quarter. Gold prices remained volatile during the quarter, impacted by the uncertainty in the market. Gold was hit by lower imports by India, dropping 52% in September after a surge to meet festival demand in August. Between the price surge in anticipation of further stimulus in Europe, the US Federal Reserve decision to defer increase in borrowing rates and

China’s yuan devaluation, the bearish sentiment continued to put pressure on the yellow metal over the quarter. Despite the current slight uplift, gold prices can be expected to remain volatile on the back of speculation that the Federal Reserve will increase interest rates sometime in the future

• The slide in base metals continued in Q3 2015 as a result of an economic slowdown and a decline in the manufacturing activities in China. In response to China’s slowing demand and concerns over metal financing inventories, copper tumbled 10% during the quarter on the London Metal Exchange (LME), the largest drop since 1Q 2014. Nickel and Lead were down 13% and 5% respectively on the LME over Q3 2015, while Zinc slipped 16%. In the face of lower prices, some companies suspended operations and focused on cost cutting. Glencore, the world’s largest miner and trader of zinc, suspended its zinc mine production in Australia and Peru, while also reducing production across its various operations.

2 | Canadian Mining Eye Q3 2015

Canadian Mining Eye Q3 2015 | 3

Mergers and acquisitionsMomentum in M&A increased significantly in Q3 2015 as a result of several high-value M&A and financing deals. A number of companies accessed financing through asset disposals, equity or stream financing arrangements, as evident in such cases as Barrick, North American Palladium and New Gold. In contrast to earlier quarters, there were many high value deals announced.

Barrick Gold announced that it entered into an agreement to sell its 50% stake in its Chile-based Zaldivar copper mine to Antofagasta on July 30, 2015, for a total consideration of US$1,005 million in cash, which consists of US$980 million upon closing, and five annual payments of US$5 million per year starting in 2016. Under the transaction, Antofagasta will take over as operator of the mine and a JV will be formed with equal representation of Barrick and Antofagasta on its board. Zaldivar produced 222 million lbs at cash cost of US$1.79/lb and EBITDA of US$260 million in 2014. The mine carries a P&P reserve of 5.56bn lbs copper at an estimated life of approximately 14 years with additional upside potential through exploration, so it appears Antofagasta is taking a longer term view. Production guidance of 230-250 lbs in 2015 at a current spot price of US$2.42/lb implies an EV/EBITDA multiple of 13.3x for the deal. The transaction is expected to close in late 2015. This transaction took Barrick to c.60% (~US$1.85 billion) of its net debt reduction target of US$3.0 billion for 2015, including disposals of Cowal (US$550 million) and Porgera (US$298 million) earlier in the year. Also, it added a partner with wide experience in Chile. After this deal announcement, Barrick entered in a US$610 million gold and silver streaming agreement with Royal Gold on August 05, 2015, for production linked to Barrick’s 60% interest in the Pueblo Vjejo mine. Following its efforts to reduce debt, Barrick announced on October 14, 2015 that it would purchase its US$850 million outstanding loan notes.1,2,3,4

OceanaGold announced acquisition of Romarco Minerals for a total consideration of CDN$856 million on July 30, 2015. OceanaGold offered 0.241 shares for each Romarco Minerals share with a consideration of CDN$0.68 per share, representing a premium of 72.7% on the closing price as of July 29, 2015. The offer price represented a premium of 71.8% to the 30-day volume-weighted average price (VWAP) of each company’s respective shares. After the completion of the transaction, existing OceanaGold and Romarco

1 “Acquisition of 50% interest in Zaldivar copper mine”, Antofagasta press release, 30 July 2015.2 “Barrick announces streaming agreement with Royal Gold”, Barrick press release, 05 August 2015.3 “Barrick Announces Early Tender Date Results of Debt Tender Offer and Amendment to Maximum Tender Amount”, Barrick press release, 14 October 2015.4 ”Zaldivar $1bn sale accretive . . . but balance sheet running to stand still”, Deutsche Bank, 30 July 2015.5 “OceanaGold to acquire Romarco creating the lowest cost gold producer globally”, OceanaGold press release, 31 July 2015.6 ”Securing a cornerstone asset”, Macquarie Research, 31 July 2015.7 ”Goldcorp acquires New Gold’s 30% interest in the El Morro project in Chile; creates 50/50 joint venture with Teck’s Relincho project”, GoldCorp press release, 27 August 2015.8 “Bolstering the Balance Sheet with Sale of El Morro Stake”, TD Securities, 28 August 2015.9 “Endeavour Mining announces strategic long term African gold partnership with Naguib Sawiris and La Mancha”, Endeavour Mining press release, September 21, 2015.

shareholders will own approximately 51% and 49% respectively of the combined entity. This combined entity will be a low-cost intermediate gold producer, diversified across New Zealand, Philippines and USA, and producing over 540kozpa starting in 2017, with a top quartile AISC of <US$600/oz. Romarco’s principal asset, Haile, is a US$331 million open cut mine, which is expected to commence production in Q4 2016 at AISC of just US$414/oz in its first year of operation. Analysts expect the Romarco acquisition to be dilutive at present, but will become EPS accretive in 2017-18, once Haile commences production. The transaction closed on October 1, 2015.5,6

New Gold sold its 30% interest in Chile-based El Morro to Gold Corp for US$90 million in cash and a 4% royalty stream on gold production from El Morro on August 27, 2015. As part of the deal, New Gold’s US$93 million project loan will be cancelled. Under the streaming agreement, New Gold will have an option to buy El Morro’s 4% gold production at US$400/oz up to 217koz with 1% per year increase after the first 217koz. In July 2015, New Gold entered into a US$175 million streaming arrangement with Royal Gold to develop the Rainy River project. Analysts expect that these two deals and the existing cash balance of US$327 million should negate any additional financing requirements for New Gold in the near future. Following the acquisition, Gold Corp became the 100% owner of the project and announced a 50:50 JV with Teck Resources, combining El Morro and Relincho projects in Chile. El Morro has P&P reserves of 8.9moz, with low grades, high capex requirement and substantial permitting issues. As such, it is not beneficial to New Gold or Gold Corp’s model independently, but significant synergies can be realized by combining with Teck’s Relincho project. The transaction is expected to close in the fourth quarter of 2015.7,8

Endeavour Mining announced a strategic partnership with La Mancha on September 21, 2015. Under the agreement, La Mancha offered its (i) 55% interest in Société des Mines (SMI), (ii) US$63 million cash (including US$25 million cash held in SMI) and (iii) commitment to invest up to US$75 million in additional funds. In return, La Mancha will be issued 177.1 million shares, representing 30% interest in Endeavour Mining, which involves a two-year equity lock-up. This deal will increase Endeavour’s gold production rate to 580kozpa, grow its P&P reserves by 23% to 8.5moz gold and reduce net debt by c.US$80 million to US$159 million. Deal proceeds will be used to fully fund the next phase of development of the Hounde project based in Burkina Faso.9

4 | Canadian Mining Eye Q3 2015

Fund-raising Pretium Resources closed a construction financing package of US$540 million with the Orion Mine Finance and Blackstone Tactical Opportunities on September 21, 2015. The financing package comprises of (i) a senior secured credit facility and offtake of US$350 million at 7.5% interest rate, maturing December 2018, (ii) an 8% callable streaming agreement of US$150 million on 7.1moz gold and 26.3moz silver production, and (iii) a private placement of US$40 million of 3.85 million common shares at US$5.1975 per share. The company will use proceeds of the financing package to fund approximately 70% of estimated US$747 million capex requirement to develop a mine at its Brucejack project, where construction is expected to commence immediately with production targeted for 2017. Analysts expect Pretium to generate sufficient free cash flows in 2018-19 to pay the credit facility in 2019, though they remain skeptical of its ability to buy back 100% of the streaming agreement.10,11

Alacer Gold signed its previously announced a US$250 million senior secured project finance facility with BNP Paribas, ING Bank and Société Génerale on September 21, 2015. The facility has a seven-year maturity at LIBOR plus 2.50%-2.95% interest rate, without any mandatory gold hedging requirements or early repayment penalties. The proceeds will be used to de-risk and advance growth of Copler Sulfide project.12

Western Potash closed its previously announced private placement of 240.4 million common shares at CDN$0.34 per share on September 16, 2015, raising gross proceeds of CDN$80.7 million. Under the transaction, Beijing Tairui Innovation Capital and CBC subscribed 238.2 million and 2.1 million shares and subsequently gained 51.0% and 10.1% ownership in Western Potash respectively. The proceeds will be used to develop company’s Pilot plant on the Milestone project.13

North American Palladium closed its previously announced rights offering of 8.4 million common shares, raising gross proceeds of approximately CDN$50 million on September 15, 2015. Pursuant to subscription privilege, approximately 7.7 million shares were subscribed by Brookfield and 0.4 million by Polar. The proceeds of the rights offering will be used to repay the amounts owed under the bridge loan facility with Brookfield and ongoing operations at its flagship LDI Mine. Earlier in the year, North American Palladium underwent a restructuring including workforce reduction and management changes.14

Imperial Metals closed its previously announced financing package of CDN$80 million on August 24, 2015, which included (i) rights offering of 5.5 million common shares at CDN$8.0/share, raising gross proceeds of CDN$44 million, (ii) private placement of 0.7 million common shares at CDN$8.4/share, raising gross proceeds of CDN$6 million and (iii) private placement of convertible debentures, bearing 6.0% p.a. interest rate, maturing August 2021, raising gross proceeds of CDN$30 million. The proceeds will be used to repay CDN$30 million line of credit from Edco Capital to fund the production ramp-up of the Red Chris mine, and to restart operations at the Mount Polley mine.15

Kennady Diamonds closed the final tranche of its previously announced private placement of 15.4 million common shares and 1.7 million flow-through common shares, raising gross proceeds of CDN$48.1 million, on October 08, 2015. The proceeds will be used to fund all aspects of Kennady North Project until the end of 2017, significantly de-risking to the company’s balance sheet.16

10 ”US$540 million construction financing; production decision for Brucejack”, Pretium Resources press release, 15 September 2015.11 “Financing package advances Brucejack to construction phase”, Scotiabank Research report, 16 September 2015.12 “Alacer gold signs $250 million project finance facility”, Alacer Gold press release, 21 September 201513 “Investment from Beijing Tairui Innovation Capital Management Ltd.”, Western Potash press release, 16 September 2015.14 “North American Palladium completes rights offering”, North American Palladium press release, 15 September 2015.15 ”Imperial files final rights offering circular and provides pricing on financings”, Imperial press release, 20 July 2015.16 “Kennady diamonds closes final tranche of $48 million non-brokered private placement”, Kennady Diamonds press release, 08 October 2015.

OutlookAlthough most of the players are making efforts to control costs, declining metal prices will put further pressure on profitability. Gold prices can be expected to remain volatile due to uncertainty over the interest rate hike by the US Federal Reserve. Some investors are using this recent upturn to book profits and move their investments in other asset classes. In addition, metal prices are expected to be affected by a macro-economic slowdown in China.

Mining companies are vulnerable to global economic uncertainty and changing investor sentiment. Some Canadian mining companies are likely to sell their assets to manage debt but will face limited interest from the various investors for these assets. While the current pricing suggests bargains may be available, the volatility and demand concerns make pricing very difficult and it takes a brave management team to make a decision to invest much needed capital in an acquisition. Despite the level of interest from private capital acquirers growing, the market remains tight and asset sales difficult to exec.

Looking ahead to upcoming quartersIn September 2015, Glencore updated its plans to reduce its net debt (US$29.6 billion) by up to US$10.2 billion, which will involve raising approximately US$2.0 billion from precious metal streaming transaction and asset sales. Proposed asset sales include a minority stake disposal in certain agriculture and infrastructure assets in Australia and Canada, in which Japanese, Chinese and Middle Eastern sovereign wealth funds showed immediate interest. Continuing with the asset sales efforts, the company also announced that it would seek a buyer for its Cobar copper mine in Australia (production of 50ktpa copper) and Lomas Bayas copper mine in Chile (production of 75ktpa copper cathode) in October.17,18,19

Following its plans to reduce debt by US$3.0 billion by the end of 2015, Barrick Gold has already sold three assets (100% stake in Cowal, 50% stake in Porgera and 50% stake in Zaldivar) for an aggregate of US$1.85 billion this year and launched a process to sell another six assets in October 2015 including: Bald Mountain (P&P reserves of 1.36moz gold), 50% stake in Round Mountain (P&P reserves of 690koz gold), Golden Sunlight (P&P reserves of 127koz gold), Ruby Hill (P&P reserves of 24koz gold), Spring Valley and Hilltop.20

In September 2015, Moody’s downgraded First Quantum Minerals’ (FQM) rating to ‘B2-negative outlook’, due to high capex committed to developing the Cobre Panama mine and high net debt levels of US$5.2 billion. Following the rating downgrade, FQM targeted to reduce net debt by US$1.0 billion by end of Q1 2016, through asset sales and strategic initiatives. On October 5, 2015, FQM entered into a streaming arrangement with Franco-Nevada, linked to production at Cobre Panama for initial funding of US$330-340 million.21

Karnalyte Resources received a proposal from Braich Group on September 21, 2015. As per the proposal, Braich showed interest in making a significant investment in Karnalyte, in return for which Braich would acquire control of the company. The Karnalyte board is considering the proposal along with other strategic options which include debt-financing by its largest shareholder, Gujarat State Fertilizers and Chemicals.22

17 ”Proposed Sale of Cobar and/or Lomas Bayas Copper Mines”, Glencore press release, 12 October 2015.

18 ”Glencore conference call”, 07 September 2015.19 “Update on Glencore’s plans to reduce net debt and adapt the business to

the current commodity landscape”, Glencore press release, 7 September 2015.

20 “Barrick Gold Q2 2015 conference call”, 06 August 2015.21 ”First Quantum Minerals Updates on Key Developments and Actions”, First

Quantum press release, 5 October 2015.22 “Karnalyte resources inc. provides clarification to Braich press release issued

on September 30, 2015”, Karnalyte press release, 05 October 2015.

Canadian Mining Eye Q3 2015 | 5

6 | Canadian Mining Eye Q3 2015

Fund-raising in Q3 2015Total proceeds of CDN$859m were raised by TSX- and TSXV-listed mining companies in Q3 2015, which is 60% lower than Q2 2015 and represents a decline of 38% as compared to the same period a year ago. In addition to the large financing deals mentioned in the ‘Overview’ section, some of the other significant financings are:

Company Total proceeds (CDN$) Type Primary use of proceeds

Klondex Mines Ltd. $26.3m Secondary Offering The proceeds will be used for repayment of senior secured notes and other working capital requirements.

Red Eagle Mining Corporation $19.4m Private Placement The company intends to use the proceeds for the construction of the

San Ramon Gold mine and general working capital requirements.

Northern Dynasty Minerals Ltd. $15.0m Private Placement The proceeds will be used to advance Pebble project and other working

capital requirements.

Integra Gold Corp. $14.6m Private PlacementThe company intends to use the proceeds for the exploration and development of the Triangle Zone at the Lamaque project and general corporate purposes.

Selected financings announced, proposed or closed in Q3 2015

Canadian Mining Eye Q3 2015 | 7

Fund-raising on the TSX and TSXV, 2010–15

1 Initial public offering (IPO) — TSX & TSXV as primary exchanges of listing.2 Funds raised from follow-on issue of shares and private placements.

Mining All TSX and TSXVMining as % of all TSX and TSXV

New issues Further issues2 Total issues New issues Further issues

Total issues Total proceeds

Number of IPOs1

Proceeds CDN$m

Number of money

raising issues

Proceeds CDN$m

Proceeds CDN$m

Proceeds CDN$m

Proceeds CDN$m

Proceeds CDN$m

%

Q3 2015 1 135 253 724 859 1,634 7,944 9,577 9%

Q2 2015 0 0 267 2,164 2,164 1,677 19,542 21,219 10%

Q1 2015 0 0 358 2,986 2,986 1,190 16,122 17,312 17%

Q4 2014 1 1 335 2,096 2,096 1,407 9,449 10,855 19%

Q3 2014 1 1 331 1,386 1,386 771 14,303 15,074 9%

Q2 2014 0 0 347 1,334 1,334 2,480 14,495 16,975 8%

Q1 2014 0 0 403 4,042 4,042 888 13,988 14,876 27%

Q4 2013 2 1 386 4,017 4,019 1,452 12,683 14,135 28%

Q3 2013 0 0 320 667 667 1,645 7,179 8,824 8%

Q2 2013 5 5 284 1,065 1,070 1,537 9,291 10,828 10%

Q1 2013 0 0 415 1,157 1,157 938 8,898 9,836 12%

Q4 2012 19 347 492 2,658 3,005 2,508 12,326 14,834 20%

Q3 2012 6 9 357 2,984 2,993 344 13,430 13,774 22%

Q2 2012 10 11 331 1,125 1,136 1,050 9,778 10,828 10%

Q1 2012 14 23 475 3,132 3,155 506 16,581 17,087 18%

Q4 2011 11 30 410 1,934 1,964 1,041 10,236 11,276 17%

Q3 2011 23 107 366 2,160 2,268 1,315 9,027 10,342 22%

Q2 2011 20 107 467 2,696 2,803 2,887 12,221 15,107 19%

Q1 2011 16 119 678 5,322 5,440 1,656 12,702 14,358 38%

Q4 2010 35 661 860 7,249 7,910 4,616 15,714 20,330 39%

Q3 2010 18 67 420 1,985 2,052 1,615 6,488 8,103 25%

Q2 2010 17 491 499 4,059 4,550 2,977 11,567 14,545 31%

Q1 2010 23 93 536 3,144 3,237 1,826 9,178 11,003 29%

2014 2 1 1,416 8,858 8,859 5,545 52,234 57,780 15%

2013 7 7 1,405 6,907 6,913 5,572 38,050 43,623 16%

2012 49 391 1,655 9,899 10,290 4,408 52,115 56,523 18%

2011 70 362 1,921 12,112 12,474 6,899 44,185 51,084 24%

2010 93 1,312 2,315 16,437 17,749 11,034 42,947 53,981 33%

Source: EY analysis of TSX & TSXV market statistics, as reported

8 | Canadian Mining Eye Q3 2015

Joiners and leavers

Including the above, there were a total of 5 new entrants into the TSX and TSXV indices in Q3 2015.

Company Index Activity/focus

TMAC Resources Inc. TSX TMAC Resources Inc. is a mineral exploration and development company, primarily focused on gold mining in the Hope Bay project in Nunavut, Canada.

AuRico Metals Inc. TSX AuRico Metals Inc. is a mining royalty and development company operating in Canada and Australia. After the merger of Aurico Gold and Alamos Gold, some assets of the former AuRico Gold (namely, the Kemess project and two royalties) were transferred to AuRico Metals to form the company.

Companies joining the TSX and TSXV indices (Q3 2015)

Company Reason for delisting

AuRico Gold Inc. Merger of AuRico Gold Inc, and Alamos Gold, Inc. (TSX:AGI)

Lithium Americas Corp. Merged with Western Lithium USA Corporation (TSX:WLC).

MagIndustries Corp. Delisted as the company failed to meet continued listing requirements of TSX.

NewMarket Gold Inc. Delisted from TSXV following its acquisition of Crocodile Gold Corp (TSX:CRK).

Companies leaving the TSX and TSXV indices (Q3 2015)

Including the above, there were a total of 40 companies leaving the TSX and TSXV indices in Q3 2015.

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Source: EY analysis of data from TSX and TSXV Market Intelligence Group, as reported; market values as at quarter-end

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Source: EY analysis of data from TSX & TSXV Market Intelligence Group, as reported; includes placements, introductions and readmissions; excludes transfers between TSX & TSXV

Admissions Delistings

Canadian Mining Eye Q3 2015 | 9

Index constituents selected at quarter endSource: EY, TSX & TSXV Market Intelligence Group.

Q3 2015 MV (CDN$m)

Q3 2015 MV (CDN$m)

Q3 2015 MV (CDN$m)

Centerra Gold 1,784 Rubicon Minerals 379 Nautilus Minerals 127 NovaGold Resources 1,535 Fortuna Silver Mines 378 Aureus Mining 127 New Gold 1,532 Katanga Mining 324 Ascot Resources 126 Centamin 1,433 McEwen Mining 321 Claude Resources, 123 Osisko Gold Royalties 1,331 Dundee Precious Metals 306 Taseko Mines 118 Pan American Silver 1,286 Mandalay Resources 287 Kaminak Gold 115 Alamos Gold, 1,262 Paladin Energy 280 Dalradian Resources 111 Dominion Diamond 1,216 Gold Reserve 274 Nio Developments 111 Pretium Resources 1,078 Orocobre 266 St Andrew Goldfields 109 Torex Gold Resources Inc 982 Denison Mines 259 Wesdome Gold Mines 108 Alacer Gold 876 Anglo Pacific Group 254 Archon Minerals 107 IAMGOLD 853 Polymet Mining 249 Trevali Mining 102 SEMAFO 850 Fission Uranium 239 NGEx Resources 101 Nevsun Resources 781 Platinum Group Metals 231 SouthGobi Resources 98 China Gold International Resources 753 EMED Mining Public 228 Noranda Income Fund 98 Silver Standard Resources 703 Endeavour Mining 227 UR-Energy 96 MAG Silver 658 Sherritt International 220 Timmins Gold 95 OceanaGold 592 Richmont Mines 216 Eastern Platinum 94 Romarco Minerals 584 Continental Gold 214 Gabriel Resources 92 Lucara Diamond 569 Argonaut Gold 211 Kennady Diamonds 90 Mountain Province Diamonds 549 Endeavour Silver 210 Gold Standard Ventures 86 Guyana Goldfields 544 Reservoir Minerals 205 Largo Resources 80 First Majestic Silver 522 GoGold Resources 203 Noront Resources 78 Stornoway Diamond 520 Newmarket Gold 193 Nevada Copper 73 Lake Shore Gold 511 Teranga Gold 191 Golden Star Resources 69 Primero Mining 507 Sierra Metals 186 Corsa Coal 65 Imperial Metals 505 Roxgold 181 Banro 55 Ivanhoe Mines 502 Energy Fuels 176 Copper Mountain Mining 48 Altius Minerals 479 Capstone Mining 168 Kirkland Lake Gold 447 NexGen Energy 157 Klondex Mines 430 Polaris Materials 155 Total universe MV CDN$m 178,372 Sandstorm Gold 420 Perseus Mining 148 Top 20 MV CDN$m 129,017 Seabridge Gold, 390 Silver Metals 145 Total universe excluding Top 20 MV

CDN$m 49,355

Lundin Gold 389 Bacanora Minerals 141 MV of Mining Eye constituents 38,945

Asanko Gold 384 Silvercrest Mines 141 MV of Mining Eye constituents as a % of MV of Total universe excluding Top 20

79%

Premier Gold Mines 384 Thompson Creek Metals Company 137

MV — Market value Detour Gold, B2Gold, AuRico Gold, Crocodile Gold, Levon Resources, Balmoral Resources, Golden Queen Mining, Bear Creek Mining, North American Palladium, Copper Fox Metals and Atlatsa Resources exited the index during the quarter

Shading represents index entrants

Changes to the Mining Eye indexThere were 11 changes in index constituents in Q3 2015. Detour Gold, B2Gold, AuRico Gold, Crocodile Gold, Levon Resources, Balmoral Resources, Golden Queen Mining, Bear Creek Mining, North American Palladium, Copper Fox Metals and Atlatsa Resources exited the index and were replaced by index entrants highlighted in the table above.

10 | Canadian Mining Eye Q3 2015

Index data

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Mining Eye S&P/TSX Composite (rebased)

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Mining Eye S&P/TSX Composite (rebased) Top 20 - TSX Mining

If you would like to view the raw index data, please contact:

Jay Patel EY’s Canadian Mining and Metals Transactions Leader + 1 416 943 3861

Jay PatelCanadian Mining & Metals Transactions Leader+ 1 416 943 3861jay.patel@ca.ey.com

Canadian contactsBruce SpragueCanadian Mining & Metals Leader+ 1 604 891 8415bruce.f.sprague@ca.ey.com

Sam WhittakerSaskatchewan Mining & Metals Leader+ 1 306 649 8369sam.whittaker@ca.ey.com

Blake LangillOntario Mining & Metals Leader+ 1 416 943 3556 blake.w.langill @ca.ey.com

Zahid FazalQuebec Mining & Metals Leader+ 1 514 879 3519zahid.fazal@ca.ey.com

The Canadian Mining Eye tracks Canadian mining sector performance of 100 TSX and TSXV mid-tier and junior companies with market capitalizations at the end, broadly falling between CDN$1.8b and CDN$48m. These companies trade on the TSX and TSXV, though some of them are headquartered outside Canada. Movements and analysis of the index are reported quarterly. From Q1 2014, we have retroactively reset the index to Top 20 and Next 100 (from Top 25 and Next 100), based on the market capitalizations at the end of 2013. The historical data has also been reset for comparatives purpose.

All company information is sourced from publicly available sources, including company websites and regulatory announcements.

The views of third parties set out in this publication are not necessarily the views of the global EY organization or its member firms. Moreover, they should be seen in the context of the time they were made.

Global Mining and Metals Leader Miguel Zweig Tel: +55 11 2573 3363 miguel.zweig@br.ey.com

Oceania Scott Grimley Tel: + 61 3 9655 2509 scott.grimley@au.ey.com

China and Mongolia Peter Markey Tel: + 86 21 2228 2616 peter.markey@cn.ey.com

Japan Andrew Cowell Tel: + 81 3 3503 3435 cowell-ndrw@shinnihon.or.jp

Africa Wickus Botha Tel: + 27 11 772 3386 wickus.botha@za.ey.com

Commonwealth of Independent States Evgeni Khrustalev Tel: + 7 495 648 9624 evgeni.khrustalev@ru.ey.com

France, Luxemburg, Maghreb, MENA Christian Mion Tel: + 33 1 46 93 65 47 christian.mion@fr.ey.com

India Anjani Agrawal Tel: + 91 22 6192 0150 anjani.agrawal@in.ey.com

United Kingdom and Ireland Lee Downham Tel: + 44 20 7951 2178 ldownham@uk.ey.com

United States Andy Miller Tel: + 1 314 290 1205 andy.miller@ey.com

Canada Bruce Sprague Tel: + 1 604 891 8415 bruce.f.sprague@ca.ey.com

Brazil Carlos Assis Tel: + 55 21 3263 7212 carlos.assis@br.ey.com

Chile María Javiera Contreras Tel: + 562 2676 1492 maria.javiera.contreras@cl.ey.com

Service line contactsGlobal Advisory Leader Paul Mitchell Tel: + 61 2 9248 5110 paul.mitchell@au.ey.com

Global Assurance Leader Alexei Ivanov Tel: + 495 228 3661 alexei.ivanov@ru.ey.com

Global IFRS Leader Tracey Waring Tel: + 61 3 9288 8638 tracey.waring@au.ey.com

Global Tax Leader Andy Miller Tel: + 1 314 290 1205 andy.miller@ey.com

Global Transactions Leader Lee Downham Tel: + 44 20 7951 2178 ldownham@uk.ey.com

Area contacts

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How EY’s Global Mining & Metals Network can help your businessWith a volatile outlook for mining and metals, the global mining and metals sector is focused on margin and productivity improvements, while poised for value-based growth opportunities as they arise. The sector also faces the increased challenges of maintaining its social license to operate, balancing its talent requirements, effectively managing its capital projects and engaging with government around revenue expectations.

EY’s Global Mining & Metals Network is where people and ideas come together to help mining and metals companies meet the issues of today and anticipate those of tomorrow by developing solutions to meet these challenges. It brings together a worldwide team of professionals to help you succeed — a team with deep technical experience in providing assurance, tax, transactions and advisory services to the mining and metals sector. Ultimately it enables us to help you meet your goals and compete more effectively.