While the benchmark S&P/TSX Composite index gained 3% in the March quarter, the Mining Eye index – which tracks 100 small and mid-cap miners – fell 13%.

The March quarter drop came after a 17% drop in the December quarter.

The index was down 22% last year and is down 33% over the past 12 months.

E&Y noted the majors were becoming “contagious” to the steep losses of the juniors, falling 7% in the December quarter and 11% in the March quarter.

The report found that by commodity, fertiliser and technology minerals companies fell by more than 30% on average, while gold and coal companies were down nearly 20%.

The only commodity groups to gain were diamonds, uranium and platinum group metals.

Standouts during the quarter were copper producer Imperial Metals (up 24%), iron ore developer Altius Minerals (up 23%), Egyptian gold producer Centamin and copper-cobalt miner Katanga Mining (both up 22%).

Poor performers were gold producer San Gold (down 63%), gold explorer Rainy River Resources (down 47%), molybdenum developer General Moly (down 45%) and Perth-based Mirabela Nickel (down 43%).

However, 35 of the 100 Mining Eye index companies lost more than 20% in the quarter.

Funds raised plummeted to $C1.15 billion from just over $3 billion in the December quarter and $3.1 billion in the same quarter of last year.

There were 415 financing deals and no initial public offerings compared to 489 financing deals, including 14 IPOs in March 2012 quarter.

Miners made up 11.8% of the total $9.8 billion raised in Toronto in the March quarter.

E&Y said the sharp decline in raisings was likely to continue in the near-term.

“But opportunities will always exist for those willing to take a long-term view of the sector,” E&Y said.