Monday was a landmark day for mining in Canada, as Osisko Mining Corp. opened the biggest gold mine in the country. A huge opening ceremony was held at the Canadian Malartic mine site in northwest Quebec.
John Hayes, an analyst at BMO Capital Markets, wrote that the openingaffirms a broader fact: that the Canadian mining industry has theability to build huge projects and companies from scratch. Osisko didnot even begin exploration at the site until 2005, at which time it was apenny stock.
“This has been the only commissioning of a major gold mine in recenthistory in Canada, not to mention the only one built by what was once a‘junior’ company,” Mr. Hayes wrote in a note.
He praised Osisko specifically, notingthat it kept full control over the project through construction andcommissioning. That allowed it to build the Canadian Malartic mine injust 20 months.
He also pointed out that the company had key external ingredients forsuccess, including a stable and supportive government and a localcommunity that understands mining (which is particularly important whenyou need to move houses to build the mine). It goes without saying thatCanadian miners running into trouble in countries like Tanzania andGuatemala do not enjoy such benefits.
Mr. Hayes has an Outperform rating on Osisko shares and aprice target of $18.00.
https://business.financialpost.com/2011/05/31/osisko-proof-that-canadian-mining-industry-works/