Junior miners trading below cash on hand

Keep calm and carry on as silver coin sales soar

By Sean Brodrick
Uncommon Wisdom 

When I was walking the rows and corridors of the Prospectors and Developers’ Association of Canada (PDAC) in Toronto this week, I kept thinking of the phrase from the London Blitz, “Keep Calm and Carry On.”

That’s because many developers and explorers I talked to were feeling the strain of sagging stock prices.

Plenty of junior miners I checked had money in the till — at least, enough to last them for a year or two. But because investor sentiment has been extraordinarily bearish, deals that might have been available six months or a year ago are no longer on the table.

But just because big-money investors are bearish on these companies, doesn’t mean individual investors are entirely bearish on the metals themselves. In fact, if you’ve bought one particular form of bullion this year, you’ve been a part of history-making sales …

First, the Bad News

Earlier this week, Stockhouse.ca noted that 4% of all junior resource companies are trading below the value of their cash on hand. Here are some examples …

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