Canada Connection: Mining stocks

For most American small-cap investors, the Canadian market usually translates into just one thing – mining stocks.

A resource-rich country, Canada has long been known both in the United States and globally as the source not only for commodities but for the expertise needed to develop those resources.

Not surprisingly then, the recent run-up in commodity prices – driven by tight inventories and a huge demand in Asia – has led to a banner year for Canadian small-cap mining companies.

In its inaugural report, the accounting giant PricewaterhouseCoopers (PwC) said that the market capitalization of Canadian small cap mining stocks grew by 86% last year because of soaring metal prices.

The new report said that total market capitalization of mining companies listed on the TSX Venture Exchange (TSX-V) almost doubled in 2006 to C$27.6-billion, from C$14.8-billion in 2005.

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