Don't be fooled by commodity rally: Many producers still face debt cliff

Toronto

IF you think commodity producers are out of the woods as markets rally, here's a reality check: many are still grappling to contain debt.

Another year of belt-tightening hasn't kept pace with an earnings slump after prices collapsed. One gauge of leverage among mining, energy and agriculture companies continued to rise in the fourth quarter and is more than double year-earlier levels.

While raw materials have rebounded in th…