Signs of life in the junior market

By Alisha Hiyate
MiningMarkets.ca 

After surviving a moribund market, junior miners can look forward to a less stressful 2013, says John Gravelle, mining leader for the Americas at PwC.

John Gravelle

“I think we’ve seen the worst of things in the markets,” Gravelle said during an interview in late November. “It’s been a rough ride, but I think better times are ahead.”

PwC catalogued what has been a bleak year for juniors in its Junior Mine 2012 report, released in November. The consulting firm found equity financings by the top 100 juniors down by 41% to $1.6 billion this year, from $2.7 billion in 2011. The market capitalization of the same group fell by 43%.

But as 2012 comes to a close, Gravelle sees some encouraging signs.

Read the full Mining Markets article . . .

See also:

Where have all the cowboys gone?

PwC issues report on Toronto juniors

Where have all the cowboys gone?

“Hold on, don’t give up” is the advice from PwC for those junior explorers and miners who have the financial strength to survive the current downturn.

By Lawrence Williams
Mineweb’s General Manager and Editorial Director

Lawrence Williams

LONDON (MINEWEB) — 2012 has seen turmoil in the TSX-V junior mining market and for many North American juniors it’s now a “matter of life or death” according to the latest survey of the sector from PwC. The top 100 TSX-V juniors in 2012 have seen a 52% decrease in debt and equity financing compared with a year earlier, and their market capitalisation has declined 43%. It’s thus been a pretty torrid time for junior miners as their financing lifeblood dwindles away.

Investors too are deemed to be far more risk averse and wary of the volatile markets. They appear to be looking increasingly to get more out of their holdings with a bias towards dividend payers (virtually no juniors can provide this by their very nature — only one of the PwC Top 100 juniors pays a dividend) or to those who  are coming up with creative ways  to give increased exposure to high commodity prices.

Read the full article . . .

Glimmers of Hope for Junior Miners

By Peter Koven
Financial Post

The carnage in the junior mining world is every bit as bad as advertised, but there are a few glimmers of hope.

That is the main message from a review of the sector released Monday by PricewaterhouseCoopers LLC (PwC). The study, conducted annually, chronicles the dramatic ups and downs of the top 100 companies on the TSX Venture Exchange.

Given the lack of financing available to most of these firms, it goes without saying that the past 18 months have been a slow-motion nightmare. According to PwC, the total market cap of 2012’s Top 100 plunged 43% compared with 2011 (as of June 30 in each case). Only 13 of them had market values above $200-million this year, compared with 36 a year ago.

Read the full article . . .