Three provinces make top 10, according to Fraser Institute
An employee of Sayona Quebec in front of a lithium deposit at the company’s North American Lithium Complex in La Corne, central Quebec.Photo by MATHIEU DUPUIS/SAYONA/AFP via Getty Images files
The report ranked 62 jurisdictions worldwide on geologic attractiveness (minerals and metals), as well as whether government policies encourage or deter exploration and investment (including permit times).
“While geologic and economic considerations are important factors in mineral exploration, a region’s policy climate is also an important investment consideration,” the report said.
This is the fifth time in six years that Saskatchewan has ranked in the global top three, though it fell from No. 2 in last year’s survey.
Saskatchewan isn’t the only Canadian jurisdiction that made the top 10, with Newfoundland and Labrador coming in at No. 4 and Quebec at No. 8.
But the report said some Canadian provinces and territories are failing to capitalize on their strong mineral potential, largely because they’re lacking a solid policy environment to attract investment.
For example, Ontario, Manitoba and Yukon all rank among the world’s top 10 most attractive jurisdictions for mineral potential, but fall to spots 18, 24 and 31, respectively, on policy factors.
“A sound regulatory regime coupled with competitive taxes make a jurisdiction attractive to investors,” Elmira Aliakbari, director of the Fraser Institute’s Centre for Natural Resource Studies and co-author of the study, said in a press release. “Policymakers across the globe should understand that mineral deposits alone are not enough to attract investment.”
Investor concerns over disputed land claims, protected areas and environmental regulations continue to be a major policy hurdle for British Columbia and Atlantic Canada. Uncertainty about protected areas, including which ones are off limits for mining exploration and production, is among the top three policy-related barriers to investment in the Atlantic provinces.
“Overregulation works as a deterrent to investment,” an unnamed president at a producer said in the report. “The project I was working on met all regulatory requirements, but still had to apply for a court order (mandamus) before the B.C. government granted the permit.”
It said mining companies across the world are increasingly embracing Canada for investing in the new technologies needed to reach net-zero greenhouse gas emission targets.
But that’s not the only reason global mining players are attracted to Canada. Other compelling reasons include:
The abundance of hydroelectric power generation.
The availability of advanced research and development centres in mining and processing industries.
An extensive resource base of most of the 31 critical minerals identified by Ottawa for driving economic growth in the green economy.
A highly skilled and experienced labour force.
Two and a half months ago, Shopify Inc. president Harley Finkelstein said the company wasn’t planning any more layoffs after slashing 10 per cent of its workforce the previous summer. Yet, following first-quarter earnings on May 4, Shopify announced it was cutting 20 per cent, or more than 2,000, staffers as it sheds a strategic part of the business once meant to expand the company beyond digital e-commerce products. The Financial Post’s Bianca Bharti explains what you need to know.
The end game for millions of Canadians who diligently save for retirement by contributing to registered retirement savings plans (RRSPs) is to be able to accumulate, on a pre-tax basis, a sufficiently large enough nest egg that will last through retirement. The tool most RRSP savers ultimately use to provide such an income stream from that plan is a registered retirement income fund (RRIF). But RRIF rules haven’t kept up with recent demographic and economic trends. Tax expert Jamie Golombek delves into what’s wrong with the RRIF and how to fix it so seniors can stop fearing their retirement savings will run out.
The local property market stands to reap significant benefits, both short-term and long-term, from a likely credit rating upgrade to investment level for Greece.
Industry executives say that would be a very positive development, as, after 14 years, the Greek real estate market will return to the “elite” of investment destinations and it will become easier to attract foreign investment groups and funds.
“There is an objective problem right now regarding the implementation of investments by a number of institutional investors, as there are rules that prohibit the placement of funds in countries below investment grade. In other words, even if there was an investment opportunity and they were willing to take the risk, such an investment would be cut off by the investment committee of the respective group, because it is not allowed to invest in countries that do not have a positive credit rating,” Tassos Kotzanastassis, ULI global management committee executive and CEO of international real estate investment management company 8G Group, tells Kathimerini.
Securing investment grade means the Greek property market will get back on the “radar” of large institutional investors and state groups that have a long-term investment horizon. This is a development that contradicts speculative moves by a portion of institutions that have been placed in Greece, with a purely short-term horizon, aiming to secure a quick profit and exit from the country.
However, as Kotzanastassis warns, new investments from large foreign funds should not be expected, at least not immediately. “In this period, at the international level, there is significant uncertainty and investors appear restrained. Many are looking for investment opportunities in the form of distressed assets,” he emphasizes.
One of the market’s perennial problems is it is shallow, so it is difficult to create economies of scale that maximize the return on an investment. Another key point is that all foreign investors of this scope are looking for properties with green characteristics, in the context of the ESG policy they follow. Such properties are still rare in this market, constituting a very small minority in relation to the total stock.
Fidelity, the lead investor in Reddit’s most recent funding round in 2021, has slashed the estimated worth of its equity stake in the popular social media platform by 41% since the investment.
Fidelity Blue Chip Growth Fund’s stake in Reddit was valued at $16.6 million as of April 28, according to the fund’s monthly disclosure released over the weekend. That’s down 41.1% cumulatively since August 2021 when the asset manager spent $28.2 million to acquire the Reddit shares, according to disclosures the firm has made in its annual and semi-annual reports.
Reddit was valued at $10 billion when the social media giant attracted funds in August 2021. Fidelity — which has marked down its stakes in many startups including Stripe and Reddit in recent quarters — also slashed the value of its Twitter stake, it disclosed in the filing, valuing Elon Musk’s firm at about $15 billion.
The substantial markdown of Reddit’s value by Fidelity predominantly occurred by the previous year. Nevertheless, it merits pointing out that Fidelity has persistently implemented minor reductions in the worth of Reddit’s shares in the ensuing months. Fidelity, also an investor in Indian startups such as Meesho and Pine Labs, has effected considerably less dramatic valuation cuts in these holdings in the past two years.
Reddit declined to comment.
This devaluation, part of a broader trend that has hit a variety of growth stage startups across the globe in the past year, raises uncertainties about whether Reddit will maintain its initial intent to reportedly go public at a valuation around $15 billion.
Reddit, which has raised over $1 billion to date, counts Sequoia Capital and Andreessen Horowitz among its backers. The firm was valued at as high as $15 billion in secondary markets late 2021, according to people familiar with the matter.
The current wave of valuation cutbacks sheds new light on the impact of deteriorating worldwide economic conditions on fledgling startups. Despite the diminished funding activities for startups globally over the past year, valuations of numerous larger startups have stayed constant.
The Federal Economic Development Agency for Southern Ontario is investing $3.5 million in the First Nations Technical Institute in Tyendinaga Mohawk Territory.
The funding is planned to be used as part of the aviation recovery plan, after a disastrous 2022 fire destroyed a hangar and an entire fleet of planes.
Part of the funds is also going to support the institute’s green energy initiative, by developing solar panels and battery storage intended to power their buildings and offset greenhouse gas emissions.
Suzanne Brant, President of the First Nations Technical Institute, thanked the government of Canada for their help in recovering after the incident.
“FTNI is grateful that the Government of Canada is investing in Indigenous initiatives in our region, providing benefits to Indigenous learners and communities across Ontario and Canada,” said Brant.
Brant also applauded FedDev Ontario‘s decision to launch a support team with dedicated resources to help indigenous businesses in southern Ontario. The new task force is connecting with indigenous lead businesses and has a new web page to show what resources are available to help them.
