All that glitters: Despite steady demand, volatile gold prices will constrain growth

Operators in the Gold and Silver Ore Mining industry in Canada have exhibited growth over the five years to 2017. This growth has largely been driven by increasing production volumes of gold, as both gold and silver prices have fallen from historic highs during the period. Up until 2012, when gold and silver prices hit their peak, industry operators ramped up production to take advantage of high prices, driving up industry revenue. However, gold and silver prices have fallen in recent years. Over the next five years, merger and acquisition activity will likely continue as new mining projects are slow to enter production. The largest companies, Goldcorp and Agnico Eagle Mines Ltd.,...read more.

Industry Statistics & Market Size
Revenue
$9bn
Annual Growth 12-17
5.0%
Forecast Growth 17-22
Profit
Employment
13,664
Businesses
31

Industry Threats & Opportunities

  • Falling gold and silver prices created a challenging operating environment, especially for small-scale companies
  • Trade levels have remained high over the past five years as the Canadian dollar depreciated
  • Gold production will likely continue to rise in Canada in coming years, despite weaker gold prices
  • Industry Report - Starting a New Business Chapter

    There are substantial barriers to entry into the Gold and Silver Ore Mining industry. Some of the most significant barriers include the capital expenditure necessary to finance exploration programs to search for precious metals and fund the development and daily operations of a mine. Furthermore, obtaining the rights to operate at a mine owned by a competitor can also be difficult and require large royalty payments. The high concentration of the four largest players, which control over half the largest production mines in Canada, complicates conditions for new entrants, especially if they are small. Competition for mine properties is nonexistent as the major players own and control most higher-grade mines. New...purchase to read more.

    Additional Insights for the Gold & Silver Ore Mining Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Gold & Silver Ore Mining Industry are

  • Ability to accommodate environmental requirements
  • Availability of resource
  • Ability to forward sell production when appropriate
  • IBISWorld analysts also discuss how external factors such as World price of gold and World price of silver in the Gold & Silver Ore Mining industry impact industry performance..

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    What's in this report

    What is the Gold & Silver Ore Mining Industry?

    This industry mines and prepares ores valued primarily for their gold or silver content. Some companies process ore into concentrate or bullion on site, while others maintain refining facilities abroad. Companies in this industry can also store and delay the sale of their output to speculate commodity price fluctuations.

    Industry Products
  • Gold ore, powder, concentrates and unwrought forms
  • Silver ore, powder, concentrates and unwrought forms
  • Industry Activities
  • Gold ore mining
  • Silver ore mining
  • Gold ore beneficiation
  • Silver ore beneficiation
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • World price of gold
  • World price of silver
  • Consumer Confidence Index
  • Canadian-dollar effective exchange rate index
  • Demand from computer and electronic product manufacturing

  • Current Performance
  • Conditions in the gold market
  • Trade
  • Industry structure
  • Chart: Revenue Growth

  • Industry Outlook
  • Demand conditions
  • Industry structure
  • Table: Gold & Silver Ore Mining Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Gold & Silver Ore Mining Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Jewellery Manufacturing in Canada
  • Commodity Dealing and Brokerage in Canada
  • Private Equity, Hedge Funds & Investment Vehicles in Canada
  • Consumers in Canada

  • Key Selling Industries
  • Forklift & Conveyor Manufacturing in Canada
  • Geophysical Services in Canada
  • Investment Banking & Securities Dealing in Canada
  • Mining, Oil & Gas Machinery Manufacturing in Canada

  • Products & Services
  • Gold ore, powder, concentrates and unwrought forms
  • Silver ore, powder, concentrates and unwrought forms
  • Chart: Gold & Silver Ore Mining Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Exports
  • Investment markets
  • Other
  • Jewellery manufacturing
  • Technology
  • Chart: Major Market Segmentation for the Gold & Silver Ore Mining Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Depreciation
  • Rent, utilities and other
  • Chart: Cost Structure Benchmarking – Sector vs Gold & Silver Ore Mining

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Gold & Silver Ore Mining Industry

  • Industry Globalization
    Agnico Eagle Mines Ltd., Goldcorp Inc., Yamana Gold Inc.,
  • Table: Agnico Eagle Mines Ltd. - financial performance
  • Table: Goldcorp Inc. - financial performance
  • Table: Yamana Gold Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Gold & Silver Ore Mining Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Gold & Silver Ore Mining Industry
    Includes:
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • World price of gold (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Bullion
  • Gold cast into ingots, coins or bars, typically with a purity of 99.9% gold, valued by its mass and purity
  • Concentrate
  • A very fine, powder-like product containing the valuable ore mineral from which most of the waste mineral has been eliminated.
  • Dore
  • After being minted, this first stage in the purification process of the gold ore produces a cast bar (gold dore) that is about 90.0% gold
  • Troy Ounce
  • A unit of imperial measure most commonly used to gauge the weight of precious metals and defined as 0.0311034768 kg = 31.1034768 g
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Gold & Silver Ore Mining market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    IBISWorld industry market research reports enable you to:
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    This report on Gold & Silver Ore Mining:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Gold & Silver Ore Mining market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Gold & Silver Ore Mining, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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