Following a period of intense weakness in commodity prices, is anyone still funding exploration and early stage mining projects?
“We are now into the fourth year of a downturn in commodity markets where traditional sources of funding such as banks and equity investors are extremely wary of putting funds into new ventures in the mining sector,” says Fiona Perrott-Humphrey , who will be chairing this critical session “Show me the money” at the 2016 Junior Indaba for explorers, developers and investors in junior mining, taking place on 1st & 2nd June at the Johannesburg Country Club, Auckland Park, Johannesburg.
“Even the large corporate buyers have their attention focused elsewhere as they seek to dispose of non-core assets to repair their own balance sheets”, she continued. So, where will the next generation of junior miners come from?
• Will investors favour only certain commodities?
• Will non-traditional sources of funding continue to grow in importance -streaming, royalties, private equity, off-take agreements, contractors?
• What do these sources of finance look for in a Junior that is different from the banker or equity investor?
• Will they demand a greater say in the running of the business than traditional lenders?
• Do Juniors have to up their game in marketing their story and seeking new avenues of funding?
• What are the long term implications for Juniors who source funds elsewhere and potentially give away some of the upside potential for short term financing?
• Will the cost of alternative financing be higher, or lower?
All these burning questions will be hotly debated at the Junior Indaba. Secure your place here.