Investors are less likely to eye the Yukon as a feasible place to start mining operations, according to a report by the Fraser Institute.
The Annual Survey of Mining Companies, 2019, says that the Yukon has been downgraded to 23rd in terms of global investment attractiveness. The territory ranked ninth in the same category in its 2018 report.
Samson Hartland, executive director of the Yukon Chamber of Mines, said other jurisdictions in Canada have fared similarly.
“We know overall, Canada-wide we have similar issues and challenges.”
Compared to other Canadian provinces and territories, the Yukon ranks fifth, according to the report.
The report looks at 76 jurisdictions across the globe. It used a survey of mining and exploration companies to “attempt to assess how mineral endowments and public policy factors such as taxation and regulatory uncertainty affect exploration investment,” according to an executive summary of the report.
Hartland said environmental assessment and permitting issues in the territory have caused “confusion, complication and delay.”
Regulatory uncertainty and timelines are distinct in the Yukon, Hartland continued, noting that this has been communicated to the Yukon government for some time.
“We’re hoping that those issues can be resolved so that it can give industry the confidence to invest in the Yukon.”
Ranj Pillai, minister of the Department of Energy, Mines and Resources, said the international report was not raised during the Prospectors and Developers Association of Canada conference in Toronto this week.
“Nobody has discussed it or questioned it,” he told reporters on March 3. “The Yukon, like a lot of great Canadian jurisdictions, were affected by this past survey. For us, any feedback we get, whether it’s positive or negative, you have to take that, analyze it and use it as a tool to improve.”
Pillai plugged the mineral development strategy as means to address outstanding problems associated with permitting. He called it the “most comprehensive strategy build in Yukon history,” adding that it’s been endorsed by all self-governing First Nations.
Stacey Hassard, interim leader of the Yukon Party, dismissed this. He said the Liberals are full of hot air when it comes to this issue — while there’s a lot of talk about plans, there’s a propensity to not follow through with them.
“We don’t see results, we don’t see the minister walking the walk,” he said.
“I think any time we see a drop from the Fraser Institute it’s important to the mining industry. We know that mining is the cornerstone of our economy in the Yukon and it’s important that government does the work that’s necessary to ensure that investors are interested and want to invest here in the territory.”
Hassard said mining company representatives raise concerns about permitting woes “on a daily basis.”
“It’s interesting that the minister would say that people aren’t concerned or aren’t talking about it. Even at Roundup we heard these concerns from industry repeatedly.”
Pillai accused the Yukon Party of grandstanding.
“I think the Yukon Party has talked about this Fraser report more than anybody else I heard, but it’s certainly not something being talked about here,” he said.
Contact Julien Gignac at julien.gignac@yukon-news.com
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
