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The Canadian Press: Half of Canada’s mining companies could go bankrupt after dismal year: analyst

Half of Canada’s mining companies could go bankrupt after dismal year: a

Analyst -THE CANADIAN PRESS 22 Dec 08  “…………………..

“I think you’ll have five bankruptcies before the second quarter (of 2009) ends, and some of them will be sizable entities,” predicted Andrew Martyn, a vice-president at Toronto-based investment adviser Davis-Rea Ltd.

“The metals side is just on the edge of apocalyptic. It looks horrible.”

Several Canadian companies – from Vale Inco, Xstrata Canada, Rio Tinto Alcan and others – have scaled back expansions, cut jobs and shut down unprofitable mines to conserve cash and get through one of the industry’s most difficult periods in decades………………………..Uranium, which the company also plans to produce, was hit harder by the commodity price slump – the spot price plummeted from a high of US$137 per pound in mid-2007 to as low as $44 per pound in October…………..First Uranium has been working to reduce its production costs as much as possible.

Tags: nuclear, antinuclear, radioactive, uranium

December 22, 2008 - Posted by Christina Macpherson | business and costs