Canada’s Top Ten miners by market cap
Canada contains vast mineral resources and is considered a tier one mining jurisdiction with a skilled workforce and robust regulatory environment. Canadian mining companies are leaders in the exploration and production of a range of essential metals, including uranium, zinc, nickel, gold, copper, silver and lead. The following list presents the top ten Canadian-headquartered mining companies, ranked according to market capitalization as of May 30, and compiled by our sister company Mining Intelligence.
1 NUTRIEN
Market cap: $67.8 billion
Nutrien (TSX: NTR; NYSE: NTR) moves to the top spot this year after placing second in 2021.
The Saskatoon-headquartered company is the world’s largest provider of crop inputs and services, producing and distributing over 27 million tonnes of potash, nitrogen, and phosphate products annually for agricultural, industrial, and feed customers worldwide. It services over 500,000 grower accounts through its agriculture retail network.
In response to structural changes in global energy, agriculture, and fertilizer markets, Nutrien recently announced plans to increase its fertilizer production capacity.
The company is also accelerating the ramp up of potash production capability to 18 million tonnes per year by 2025 in response to uncertainty around supplies from Eastern Europe. This represents an increase of more than 5 million tonnes, or 40%, compared to 2020 production.
To boost production, Nutrien says it will hire and train approximately 350 people and invest in underground mining equipment, mine development, storage, and loadout capacity. It is also evaluating additional low-cost brownfield expansion opportunities beyond 18 million tonnes at its mines in Saskatchewan.
Nutrien is looking to enhance its nitrogen portfolio by advancing previously announced brownfield expansion projects, which are expected to add about 500,000 tonnes of capacity by the end of 2025. It is evaluating the potential for additional low-cost brownfield expansion projects, with a final investment decision expected over the next 12 months, the company said in June.
Through the completion of inflight brownfield projects and additional growth projects under evaluation, Nutrien says that annual nitrogen sales volumes could increase to approximately 13.5 million tonnes per year by 2027.
This year, the company plans to repurchase an additional $2 billion worth of shares, for a total of approximately $4 billion of repurchases, and is expected to increase its total return on capital to shareholders through dividends and share repurchases to about $5 billion.
2 BARRICK GOLD
Market cap: $46.6 billion
Barrick Gold (TSX: ABX; NYSE: GOLD) drops to second place this year after occupying the top spot for the preceding two years.
Headquartered in Toronto, Barrick is a leading producer of gold and copper and has assets in many of the world’s most prolific gold districts. It holds a portfolio of operating mines and projects spanning four continents and 18 countries in North and South America, Africa, Papua New Guinea and Saudi Arabia.
In 2021, the company produced 4.4 million attributable oz. gold, with its Nevada Gold Mines operation, the single largest gold mining complex in the world, contributing nearly half of total production at 2 million ounces.
Owned 61.5% by Barrick and 38.5% by Newmont (TSX: NGT; NYSE: NEM), the mining complex comprises three of Barrick’s tier-one assets — Carlin, Cortez, and Turquoise Ridge — along with the Phoenix and Long Canyon open pit mines.
In 2022, the complex is expected to produce 1.9-2.1 million attributable gold ounces in 2022.
Barrick also aims to save an estimated 104,000 tonnes of carbon dioxide equivalent emissions at its Nevada Gold Mine operation by replacing the last of its coal-fired powered stations with natural gas. The first 100 megawatt phase of the program is expected to save approximately 52,000 tonnes of CO2 equivalent per year, it says.
The company has set 2022 production guidance at 4.2 to 4.6 million oz. of gold and 420 to 470 million lb. of copper.
3 AGNICO EAGLE MINES
Market cap: $31.3 billion
Agnico Eagle Mines (TSX: AEM; NYSE: AEM) is a precious metals producer with operations in Australia, Canada, Finland, and Mexico and a pipeline of high-quality exploration and development projects in those countries as well as in Colombia and the United States.
The company stayed in third spot again this year, despite completing a $13.5-billion all-share merger with Kirkland Lake Gold in February.
In April, the Toronto-headquartered miner released first-quarter results for 2022. Highlights included payable gold production of 660,604 oz. at production costs of US$1,002 per oz., total cash costs of US$811 per oz., and all-in sustaining costs (AISC) of US$1,079 per ounce.
The company said the results include full quarter production figures from its mines, including 52 days of production from the Detour Lake, Macassa, and Fosterville mines following the Kirkland Lake merger.
When full quarter production from these mines is included, total payable gold production for the quarter increases to 806,329 oz., with total cash costs approximately in line with this year’s mid-point guidance announced in February.
Agnico says gold production, costs, and capital expenditure guidance for 2022 remain unchanged, with about 3.2 to 3.4 million oz. of expected production at total cash costs of US$725-775 per oz. and AISC of US$1,000-1,050 per ounce.
Commenting in an Apr. 28 press release, Ammar Al-Joundi, Agnico Eagle’s president and chief executive, said, “Supported by strong metal prices, the first quarter generated solid operating cash flow which allowed the company to continue to deliver on shareholder returns while paying down debt, and investing in our operations and pipeline projects.”
4 TECK RESOURCES
Market cap: $30.1 billion
Teck Resources (TSXV: TECK.B; NYSE: TECK) is a diversified resource company focused on steelmaking coal, copper, zinc, and energy. It owns or has interests in 10 operating mines, a large metallurgical complex, and several major development projects in the Americas.
Last year, the Vancouver-headquartered company generated record revenues of $13.5 billion, an increase of 1.5 times from 2020, with 47% of the revenue attributed to steelmaking coal, 26% to zinc, 23% copper, and 4% energy. It said the figures were based on a five-year average.
Teck reported cash flow from its operations of $4.7 billion, record adjusted EBITDA of $6.6 billion, and $2.9 billion in profit attributable to shareholders, or $5.39 per share.
An aerial view of Teck’s Quebrada Blanca Phase 2 (QB2) flagship copper project in Chile. Credit: Teck Resources
In February, the company declared a 62.5¢ per share dividend, increased its annual base dividend to 50¢ per share, and authorized up to $100 million of share buybacks.
Due to higher average copper prices of US$4.27 per lb. over 2021, Teck said that its copper business unit’s gross profit more than doubled over the previous year to $1.7 billion. Supported by an average zinc price of US$1.39 per lb., its zinc business increased gross profit by 32% compared with 2020. Based on metallurgical coal prices of US$209 per tonne, its steelmaking coal business increased gross profits to $2.5 billion.
5 FIRST QUANTUM MINERALS
Market cap: $25.1 billion
First Quantum Minerals (TSX: FM) makes it into the top 10 for the first time in three years.
The company produces copper in concentrate, copper anode, copper cathode, nickel, gold, zinc, silver, acid, and pyrite. It operates eight producing mines and three development projects in nine countries spanning four continents, and is the world’s sixth largest copper producer.
First Quantum’s portfolio of assets includes high-quality, low-cost copper mines including Kansanshi in Zambia and Cobre Panama in Panama, which started producing in 2019. It has significant additional copper and nickel projects in Africa and Australia that produce gold, zinc, and cobalt as byproducts.
In 2021, the company reported record annual copper production of 816,435 tonnes, which it said was attributable to record-breaking production at Cobre Panama and the resilience of its other operations.
Combined with higher metal prices, this led to its best financial performance to date, it said, with sales revenues of $7.2 billion, gross profits of $2.6 billion, operating cash flow of $2.9 billion, EBITDA of $3.7 billion, and a reduction in net debt of $1.4 billion.
First Quantum’s updated 2022 production guidance (on a 100% basis) stands at 790,000 to 855,000 tonnes of copper, 285,000 to –310,000 oz. of gold, and 25,000 to 30,000 tonnes of zinc. Cobre Panama is expected to produce 330,000 to 360,000 tonnes of copper and Kansanshi 175,000 to 195,000 tonnes. All-in sustaining costs (AISC) are expected to be US$2.15 to –US$2.30 per lb. for copper and US$7.50 to –US$8.50 per lb. for nickel.
6 CAMECO
Market cap: $12.8 billion
Cameco (TSX: CCO; NYSE: CCJ) jumped to sixth position this year after placing ninth in 2021.
A pure-play nuclear fuel company and one of the world’s largest uranium producers, Cameco has operations and investments across three continents that span the entire nuclear fuel cycle from exploration to fuel manufacturing.
Its uranium operations include Cigar Lake in northern Saskatchewan; Inkai in Kazakhstan; and several suspended assets in Saskatchewan and the United States.
Earlier this year, the company announced a planned restart of its 70% owned McArthur River mine and Key Lake mill, which have been on care and maintenance since mid-2018. As the uranium market has improved, Cameco plans to move from producing at only 25% of its capacity in 2021 to 60% of capacity in 2024.
At the end of 2021, Cameco held proven reserves (on a 100% basis) of 264.5 million tonnes of uranium octoxide (U3O8) containing 651.5 million lb. of U3O8 and probable reserves of 81.2 million tonnes containing 176.8 million lb. of U3O8.
Mineral resources (on a 100% basis) stand at 121.1 million indicated tonnes containing 179.4 million lb. of U3O8 and inferred resources of 113.5 million tonnes containing 406.4 million lb. of U3O8
Last year, the company produced 6.1 million lb. of U3O8, generated revenues of $1.5 billion, and earned gross profits of $2 billion. Planned production for 2022 is estimated at 11 million lb. of U3O8.
Through its fuel services division, Cameco also owns the Blind River refinery in Ontario, the world’s largest uranium refinery; the Port Hope & Cobourg fuel manufacturing facility, one of only four commercial suppliers in the western world of uranium hexafluoride, also in Ontario; and Cameco Fuel Manufacturing Inc., the largest Canada-based supplier of components for CANDU reactors.
7 IVANHOE MINES
Market cap: $12 billion
Ivanhoe Mines (TSX: IVN; US-OTC: IVPAF) has a portfolio of copper, zinc, gold, silver, and platinum group metals projects in Southern Africa.
The company is focused on developing and expanding four mining and exploration projects — the Kamoa-Kakula copper mining complex in the Democratic Republic of the Congo (DRC); the Platreef palladium-rhodium-platinum-nickel-copper-gold discovery in South Africa; the historic Kipushi zinc-copper-germanium-silver mine, also in the DRC; and exploration of the Western Foreland, near Kamoa-Kakula.
Ivanhoe reported record monthly production for May of 29,800 tonnes of copper in concentrate from its Kamoa mine. That same month, Kamoa-Kakula milled 660,000 tonnes of ore at an average feed grade of 5.5% copper.
The company said the record production at Kamoa was achieved despite two days of planned interruptions for scheduled maintenance on the Phase 1 plant, which included relining of the primary ball mill and commissioning of a third Larox filter press.
The work, it said, enhanced ore throughput rates for the Phase 1 and Phase 2 plants, which now have a combined annualized processing rate of approximately 8 million tonnes.
The first ore was introduced to the 3.8-million-tonne-per-year second phase plant in March, with the first commercial copper concentrate produced in April, four months ahead of schedule. The second phase plant, it noted, is now operating at similar throughputs and recoveries to the first phase plant.
8 LUNDIN MINING
Market cap: $8.2 billion
Lundin Mining (TSX: LUN) is a diversified base metals mining company with a portfolio of operations and projects in six countries spanning three continents. The company primarily produces copper, zinc, gold, and nickel.
Lundin’s producing mines include its flagship Candelaria copper mining complex, a copper-gold-silver underground and open pit mining operation in Chile; the Chapada copper-gold open pit mine in Brazil; the Neves-Corvo copper-zinc-lead underground mine in Portugal; the Zinkgruvan zinc-lead-copper-silver underground mine in Sweden; and the Eagle nickel-copper-platinum group metals underground mine in the U.S.
In April, the company acquired Josemaria Resources and with it, the Josemaria copper-gold-silver project in Argentina’s San Juan Province, approximately 9 km east of the border with Chile.
Lundin says it intends to develop Josemaria as a large-scale open pit mine, and expects to mine over 1 billion tonnes of ore at average diluted head grades of approximately 0.3% copper and 0.22 gram gold per tonne over a 19-year mine life.
In 2021, the company produced 262,884 tonnes of copper (on a 100% basis), 143,797 attributed tonnes of zinc, 167,000 oz. of gold (on a 100% basis), and 18,353 attributed tonnes of nickel.
Lundin set its 2022 production guidance at 258,000 to 282,000 tonnes of copper, 188,000 to 203,000 tonnes of zinc, 153,000 to 163,000 oz. of gold, and 15,000 to 18,000 tonnes of nickel.
9 KINROSS GOLD
Market cap: $7.2 billion
Kinross Gold (TSX: K; NYSE: KGC) holds a diverse portfolio of gold mines and projects in the Americas and West Africa.
In mid-June, Kinross completed the sale of all of its Russian assets to the Highland Gold Mining group of companies.
Following a review by Russia’s Sub-commission on the Control of Foreign Investments, Kinross will now receive only half of the US$680 million in proceeds agreed in April. To date, the company has received US$300 million and will receive a deferred payment of US$40 million on the one-year anniversary of the deal’s closing.
Kinross is now focused on its assets in the Americas, which account for approximately 70% of total gold production, and includes two Tier 1 assets — Paracatu in Brazil and Fort Knox in Alaska.
In 2021, the company produced 2.1 million attributable gold-equivalent oz. at attributable all-in sustaining costs (AISC) of US$1,138 per gold-equivalent oz. for a capital expenditure of US$939 million.
Kinross reported net earnings for 2021 of US$221.2 million, compared with US$1,3 billion the previous year. It said that the drop in net earnings was mainly a result of the temporary suspension of milling operations at its Tasiast mine in Mauritania and the deferred mining activity at Round Mountain in the U.S.
In 2022, the company expects to increase production by 28% year-over-year to 2.7 million gold-equivalent oz., with a further increase to 2.8 million gold-equivalent oz. in 2023. It’s also planning to deliver a first resource for the high-grade Great Bear gold project in Ontario that it acquired for $1.8 billion in February.
10 TURQUOISE HILL RESOURCES
Market cap: $7.1 billion
Turquoise Hill Resources (TSX: TRQ; NYSE: TRQ) makes the top ten list for the first time.
The Montreal-headquartered miner is focused on operating and developing the Oyu Tolgoi copper-gold mine in southern Mongolia. The mine is 66% held by Turquoise Hill, with the remaining 34% held by Mongolian-stated owned Erdenes Oyu Tolgoi LLC.
Turquoise Hill reported first quarter 2022 production from Oyu Tolgoi of 30,300 tonnes of copper in concentrate, a decrease of 33% from the same period last year, and 59,000 oz. of gold in concentrate, a decline of 60% from quarter one 2021 and a 25% reduction compared with the fourth quarter of 2021.
The company said the reduced production from the last quarter of 2021 was due to lower mill throughput, which at 9.6 million tonnes was 9% lower compared to the first quarter of 2022 and 2% lower than one quarter one in 2021.
The reduction, it said, was in line with expectations due to planned maintenance and lower copper and gold head grades.
While Turquoise Hill has maintained 2022 copper production guidance at 110,000 to 150,000 tonnes, it has revised gold production from 115,000 to 165,000 oz. to 135,000 to 165,000 oz. and is trending toward the higher end of the range, it said.
This article was first published by The Northern Miner. Read the original story here.