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Mining operations can be seen at the Rio Tinto alumina refinery and bauxite mine in Gove, also known as Nhulunbuy, located 650 kilometers (404 miles) east of Darwin in Australia's Northern Territory July 16, 2013.
Mining operations can be seen at the Rio Tinto alumina refinery and bauxite mine in Gove, also known as Nhulunbuy, located 650 kilometers (404 miles) east of Darwin in Australia's Northern Territory July 16, 2013.
(David Gray/Reuters)

SCOTT BARLOW

Key indicator says it’s time to buy Canadian miners

ROB Insight is a premium commentary product offering rapid analysis of business and economic news, corporate strategy and policy, published throughout the business day. Visit the ROB Insight homepage for analysis available only to subscribers.

The S&P/TSX Diversified Mining index recently bounced off the same valuation level, at about six times forward cash flow, for the fifth time since 2006. The statistical history does not go far enough back to bet big money on the trend, but investors in the sector should pay close attention for buying opportunities if the index hits the same mark again.