After a slump lasting a little more than a decade – it appears mining might finally be back. In Canada, the Brazilian owned Vale (formerly Inco) now seems to be emerging from its cocoon and is upping its exploration efforts in search of more ore.
With all things pointing up for nickel including rising prices bolstered in part by innovations like electric cars – mining giants like Vale and Glencore seem to be preparing for a positive future.
But what should we realistically expect? Will it be a return to 20 dollars per pound nickel that saw billion-dollar acquisitions, massive bonuses for employees and communities rolling in cash? Or, will this time be a bit more tempered and reserved? Who will benefit and who should be a bit more cautious this time?
The higher the price for nickel usually means a rush to hire more miners, engineers, geologists and workers while greatly benefiting the service and supply industries. All of this should ripple positively across not just the local but Provincial and even National economies but in turn could impact cash flow planning and financing for growth.
That’s where the experts from Freelandt Caldwell Reilly LLP can help.
Joel Humphrey is a Chartered Professional Accountant (CPA, CA). Joel with over a decade of public accounting experience providing financial advisory, corporate taxation, and assurance related services to small and medium enterprises in a variety of industries. To contact Joel directly, simply click on his icon to arrange an appointment regarding this topic.
Joel Humphrey, CPA, CA Partner
Joel has over a decade of public accounting experience providing financial advisory and assurance related services.