MESSAGE FROM THE PRESIDENT
prices—mainly gold and silver—have generated renewed investor interest and pushed the market value of mineral issuers higher over the last six months. With half of domestic and global exploration focused on gold and silver, the direction of these metals will likely determine the trajectory of industry investment over the short-tomedium term. Along with the ability to thrive in uncertain market conditions, our industry continues to adapt to the expansive social and cultural movements that shape the way our members operate. As the leading voice of the mineral exploration community, PDAC’s work supports the mineral sector’s efforts to enhance its environmental and social performance, including the foundational role the sector will play in the transition to a low carbon future. To support these objectives, PDAC continues to work with governments and advocate for policy such as: enhanced funding for, and growth in, northern communities; strengthening Indigenous-industry partnerships; improving transportation and energy infrastructure; enhancing investment in geoscience and innovation to help improve discovery rates; and establishing predictable, coordinated and effective regulatory regimes.
Over the past few centuries Canada has solidified its position as a global leader in mineral exploration and mining. From the first large-scale iron ore operation in Québec during the 18th century, to the rapid development of coal production in Cape Breton, to the discovery of precious metals and the push west to find new deposits such as nickel in Sudbury and the gold rushes of the Fraser Valley and Klondike, our sector has emerged as a cornerstone of this country’s prosperity and a respected voice around world. Yet despite our achievements and global status, the boom and bust cycles that have molded our industry over the centuries are as prevalent as ever—testing our resiliency and resolve like never before. Market uncertainty and fluctuations in commodity prices since the downturn of 2008 are now a part of doing business. Overall equity funding, for instance, was down this past year for the second year in a row and heading toward a decade low. Exploration spending is also down relative to last year, and overall financing activity is projected to decline further heading into 2020. But there are signs that the sector is once again adapting and persevering. Canada still remains a global leader in financing with over 30% of all equity funds raised through Canadian exchanges (TSX/TSXV). Moreover, positive swings in metal
This past year, PDAC also launched a Gender Diversity & Inclusion: A Guide for Explorers to assist junior exploration and mining companies in their efforts to improve diversity and inclusion. The resource provides information and practical tools for implementing strategies that cultivate inclusive and diverse environments within companies, and the communities they engage within and operate in. To keep our members up to speed on the latest trends and developments, PDAC started a series of webinars and a blog forum to provide a range of platforms for discussing issues that are shaping the sector. In addition, the association has expanded its student program to include new grads and early career professionals, while also providing resources and networking venues to showcase the vast array of career opportunities available in the sector. Anchoring all of these activities is our annual PDAC Convention that brings together investors, analyst, executives, prospectors, geologists, students, Indigenous communities and government officials from all over the world to learn about the latest trends shaping the sector, and how we as a community can build a competitive, sustainable and responsible industry that meets the demand of a low carbon future for generations to come. Adapting to change has always been a hallmark of Canada’s mineral sector, and PDAC is committed to leading the way for our members in the years ahead.
Felix Lee President PDAC 1
