This is the season of quarterly reports (one of four times annually), but importantly the end of June marks the mid-point of 2016. From the results so far, this year is going to be an exceedingly difficult one in which to avoid losses.
Most of the companies in the table below lost money in the second quarter, none more so than Suncor’s oil sands business. Revenue fell more than 60% during Q2 2016 compared to the same period a year earlier. Not that Suncor did anything wrong, but its oil sands operations were interrupted for half of the quarter by monstrous forest fires that required the evacuation of 90,000 people. Fortunately for Suncor and other oil sands producers, the fires did not reach their production sites.
Many of the gold producers on the list fared a bit better as the price of the yellow metal rose significantly to US$1,320.75 at the end of June, up roughly 9% since the end of March. The second quarter gains followed a first quarter jump of 14% over its Jan. 4 price of US$1,082.25. Detour Gold, Kinross and Goldcorp recorded losses.
If you are a producer of base metals or uranium, expect losses to continue.
With the first half of the year being so difficult, Canadian miners will probably finish up with the same problems – low commodity prices, reduced revenues, and losses.
If any readers can find reasons to be more optimistic, please share them in the comments below.
Selected Canadian mines Q2 and 1H 2016 results
| |
Three months to June 30 |
|
Six months to June 30 |
|
| |
2016 |
2015 |
2016 |
2015 |
| Agnico Eagle Mines |
|
|
|
|
| Gross revenue |
US$537.7 |
US$510.1 |
US$1,028.2 |
US$993.7 |
| Net earnings (loss) |
US$19.0 |
US$10.1 |
US$46.8 |
US$38.8 |
| Barrick Gold |
|
|
|
|
| Gross revenue |
US$2,012.0 |
US$2,231.0 |
US$3,942.0 |
US$4,476.0 |
| Net earnings (loss) |
US$138.0 |
(US$9.0) |
US$55.0 |
US$48.0 |
| Cameco |
|
|
|
|
| Gross revenue |
C$466.0 |
C$565.0 |
C$875.0 |
C$1,130.0 |
| Net earnings (loss) |
(C$137.0) |
C$88 |
(C$59.0) |
C$79.0 |
| Capstone Mining |
|
|
|
|
| Gross revenue |
US$100.2 |
US$112.5 |
US$226.5 |
US$215.4 |
| Net earnings (loss) |
(US$13.4) |
US$1.3 |
(US$26.2) |
(US$16.0) |
| Centerra Gold |
|
|
|
|
| Gross revenue |
US$161.6 |
US$146.8 |
US$234.8 |
US$359.4 |
| Net earnings (loss) |
US$2.9 |
US$21.9 |
US$21.0 |
US$62.6 |
| Detour Gold |
|
|
|
|
| Gross revenue |
US$166.7 |
US$163.0 |
US$145.7 |
US$142.4 |
| Net earnings (loss) |
(US$30.7) |
US$27.6 |
(US$40.8) |
(US$44.3) |
| First Quantum Minerals |
|
|
|
|
| Gross revenue |
US$659.0 |
US$558.0 |
US$1,379.0 |
US$1,160.0 |
| Net earnings (loss) |
US$142 |
(US$97.0) |
US$190.0 |
(US$187.0) |
| Goldcorp |
|
|
|
|
| Gross revenue |
US$753.0 |
US$1,188.0 |
US$1,697.0 |
US$2,205.0 |
| Net earnings (loss) |
(US$78.0) |
US$392 |
US$2.0 |
US$305.0 |
| Hudbay Minerals |
|
|
|
|
| Gross revenue |
US$247.0 |
US$150.9 |
US$500.6 |
US$279.6 |
| Net earnings (loss) |
(US$5.7) |
(US$45.8) |
(US$21.5) |
(US$64.1) |
| Kinross Gold |
|
|
|
|
| Gross revenue |
US$876.4 |
US$755.2 |
US$1,659.0 |
US$1,546.6 |
| Net earnings (loss) |
(US$25.0) |
(US$83.2) |
US$10.0 |
(US$89.9) |
| Lundin Mining |
|
|
|
|
| Gross revenue |
US$342.3 |
US$501.3 |
US$711.9 |
US$1,032.8 |
| Net earnings (loss) |
(US$791.2) |
US$46.4 |
(US$813.3) |
US$118.1 |
| New Gold |
|
|
|
|
| Gross revenue |
US$180.3 |
US$ 167.7 |
US$334.8 |
US$336.6 |
| Net earnings (loss) |
(US$8.8) |
US$9.4 |
US$18.0 |
(US$34.4) |
| Potash Corp. of Saskatchewan |
|
|
|
|
| Gross revenue |
US$1,053.0 |
US$1,731.0 |
US$2,262.0 |
US$3,396.0 |
| Net earnings (loss) |
US$121.0 |
US$417.0 |
US$196.0 |
US$787.0 |
| Suncor (oil sands only) |
|
|
|
|
| Gross revenue |
C$810.0 |
C$2,204.0 |
C$2,395.0 |
C$3,981.0 |
| Net earnings (loss) |
(C$1,063.0) |
(C$44.0) |
(C41,587.0) |
(C$190.0) |
| Taseko Mines |
|
|
|
|
| Gross revenue |
C$ 55.1 |
C$92.8 |
C$113.3 |
C$147.8 |
| Net earnings (loss) |
(C$19.4) |
C$4.0 |
(C$37.8) |
C$6.0 |
| Teck Resources |
|
|
|
|
| Gross revenue |
C$1,740.0 |
C$1,999.0 |
C$3,438.0 |
C$4,023.0 |
| Net earnings (loss) |
C$3.0 |
C$79.0 |
C$21.0 |
C$143.0 |
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