Mining and minerals

KPMG’s depth of experience in the mining industry helps give us a capacity to innovate that is truly vital in these times. We aim to offer our clients leading edge thinking as we advise on strategies that help attain major business goals.

Toronto and Vancouver are among KPMG’s 14 Mining Centres of Excellence across the globe. In Canada, the nexus of the global mining industry, our mining group enjoys daily exposure to the highest concentration of mining companies and mining listings in the world. The Canadian firm is a driving force in KPMG's Global Mining Network, which shares intelligence among all national member firms. Located near areas with high levels of mining activity, our Global Mining Network helps enable us to serve clients with consistent quality at head office and the mine site.

While commodity prices are receding, investors are fleeing to more attractive industries. How much capital will eventually flow back to mining equities is in doubt, given the success of commodities ETFs. In these circumstances, many mining companies are concerned about protecting the business more than growing the business.

Mining companies in this position need to rely on carefully crafted financial strategies that preserve value. This includes keeping a tight grip on all major risks, such as:

• Commodity price risk
• Liquidity risk
• Operating cost escalation
• Capital cost escalation
• Capital allocation
• Resource nationalism

KPMG in Canada is also a member of the Mining Industry Task Force on IFRS formed by CPA Canada and PDAC. Through the Taskforce, KPMG shares views on IFRS application issues of interest to mining companies which are published in a series of Viewpoint papers.