Prices for the yellow metal increased by 11% in the March-June period this year after a 6% gain in the previous quarter. The metal is expected to remain near historic highs on the back of US dollar weakness, government stimulus, geopolitical tensions and low interest rates, EY says. <\/p>\n It means that gold projects investors long shrugged off or ignored are suddenly back in reach for chief executives. IAMGOLD\u2019s (TSX IMG), (NYSE: IAG) recent decision to move ahead with its C\u00f4t\u00e9 gold project<\/a> in northern Ontario, Canada, is a case in point.<\/p>\n Construction at the $1.3 billion, open-pit project, in which joint-venture partner Sumitomo Metal Mining has a 30% stake, is slated to begin in the third quarter. Commercial production expected in the second half of 2023.<\/p>\n Base metals, another sector with a strong Canadian presence, also saw an uptick in the quarter. Prices for copper, nickel and zinc climbed by 22%, 12% and 7% respectively. EY expects the red metal to continue rising, while nickel and zinc are projected to experience downward pressure in the near term.<\/p>\n \u201cThe good news is that Canada remains an attractive destination for foreign capital. Recent transactions show a trend toward zero premium deals to obtain cost, operation and corporate synergies \u2014 plus offer an opportunity to gain more diversified portfolios,\u201d Jeff Swinoga, EY Canada Mining & Metals Co-Leader, said in a statement<\/a>.<\/p>\n The Canadian Mining Eye index reflected the investment environment with a dramatic 72% rebound in Q2 2020. That compares to a 29% decline in the first three months of the year<\/a> amid the impact of the coronavirus pandemic. <\/p>\n \u201cThis activity is expected to continue as buyers remain cautious and focus on minimizing costs and maximizing shareholder returns,\u201d Swinoga noted.<\/p>\n EY also predicts more zero premium deals \u2014 mergers of equals where no premium is paid by the buyer. This trend will be boosted by buyers\u2019 current focus on minimizing costs, increasing liquidity and maximizing shareholder returns, the consultancy says.<\/p>\n A recent report from PwC highlighted that Canadian miners entered the pandemic crisis in a good position, as most boasted strong balance sheets and improved liquidity. <\/p>\n![\"\"](\"https:\/\/www.mining.com\/wp-content\/uploads\/2020\/07\/mining-eye-index-q2-2020.jpg\")
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<\/figure>\nMerger of equals boom<\/strong><\/h2>\n