According to media reports, Canada’s mining industry is facing a severe crisis. Among mining companies listed in Canada itself, there are already... 52% Becoming a “zombie mine,” the situation is extremely severe.

What is a “zombie mine”? Of course, this isn’t to say that the mines of these mining companies are actually overrun with zombies—rather, it’s a metaphor for their financial condition. In other words, these companies are in a state of negative working capital. To put it more plainly, their short-term assets are no longer sufficient to cover their short-term liabilities—simply put, they’re on the verge of insolvency. As soon as creditors tighten their lending conditions, these companies will go bankrupt.

The above diagram illustrates the current situation. At 2015 Year, among Canadian publicly listed mining companies 589 Family members of “zombie” companies , its total negative operating asset status reached -215 hundreds of millions of dollars, and by the time... 2016 The situation further deteriorated this year. More than half have already had it. 669 A company has become a “zombie” company, and its net operating assets have reached a negative status. -283 hundred million dollars.

And these listed companies are also in a “zombie” state on the stock market. These zombie companies 51% , the stock price is at 0.025 Dollar status, 68% The zombie company’s transaction volume for last year was actually less than... 5 Ten thousand US dollars, 55% The zombie company’s market capitalization is insufficient. 100 Ten thousand US dollars. For Chinese stock investors, this must surely be unbelievable—can you imagine? A The company's annual transaction volume is less than... 30 Ten thousand RMB?

However, this is precisely the current state of Canada’s mining industry—a microcosm of the economic cycle entering a slowdown and global commodity prices declining. For China’s mining sector, too, the situation is largely similar: many mines are facing significant revenue declines, even to the point of struggling for survival. Coupled with the massive employment issues involved, relevant industries and local governments will need to carefully consider the best possible solutions.