(Kitco News) - Investors are not placing much value in resource companies despite the jump in metal prices, said Richard Carleton, CEO of the Canadian Securities Exchange (CSE).
Carleton spoke to Kitco Mining in early June at THE Mining Investment Event of the North in Quebec City.
The CSE has offices in Vancouver and Toronto. It has over 800 listings.
Gold has hit several all-time highs in 2024, but resource companies are not seeing much of a lift, noted Carleton.
"The index of gold exploration companies, even the later stage companies that have extended their projects to quite a considerable degree...still haven't gotten the love from the markets in terms of the valuations at this point," said Carleton.
In the spring, the Canadian federal government proposed a rise in the capital gains tax. Starting June 25, the capital gains inclusion rate would be increased from one-half to two-thirds for capital gains of over $250,000 per year for Canadians, and on all capital gains for corporations and most types of trusts, according to a statement by the Canadian finance ministry.
Carleton said the proposed changes will have “a devastating impact on flow-through financing and other means of direct investment into exploration and mining” in Canada.
Coverage of the THE Mining Investment Event of the North is sponsored by EMX Royalty.
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