By Andrew Topf
Resource Investing News
Junior mining companies, faced with an equity market that has all but dried up, are looking to less traditional forms of financing, according to a report released today by Deloitte.
In the 2014 version of its annual Tracking the Trends report, consulting firm Deloitte outlines the top 10 issues mining coming will face in 2014, among them, unsurprisingly, the obstacles that junior companies are facing in attracting funding needed to fuel exploration expenditures, not to mention annual costs such as office overhead, salaries and listings fees.
Deloitte makes the point that should a widespread failure of junior mining companies in certain commodity markets occur, the consequence could be shortfalls in the commodities that the majors no longer produce — using molybdenum and ferrochrome as examples.