{"id":1103220,"date":"2019-03-04T11:32:22","date_gmt":"2019-03-04T11:32:22","guid":{"rendered":"http:\/\/www.mining.com\/?p=974638"},"modified":"2019-03-04T11:32:22","modified_gmt":"2019-03-04T11:32:22","slug":"equity-markets-sour-on-junior-mining-sector-report","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=1103220","title":{"rendered":"Equity markets sour on junior mining sector \u2013 report"},"content":{"rendered":"

Financing for global mining and exploration lost momentum in 2018 with equity markets in particular shunning the metals and minerals sector according to a report released on the eve of mining’s biggest annual gathering in Toronto, Canada.<\/p>\n

State of Mining Finance 2019<\/a>, produced by the Prospectors & Developers Association of Canada (PDAC) and junior financing tracker Oreninc, paints a grim picture of mining and exploration companies’ ability to attract capital, citing metal price weakness last year as a main driver behind the decline.<\/p>\n

\"Equity<\/p>\n

Source: State of Mineral Finance 2019<\/p>\n<\/div>\n

Mineral industry equity financing in 2018 dropped by nearly 35% from a year earlier to establish a new decade low\u00a0for both total value raised and number of transactions completed according to the report titled At a Crossroads<\/i>.<\/p>\n

While funding earmarked specifically for exploration remained above the lows of 2013 and 2015, it more than halved last year to $4.1 billion. That’s also less than \u00bc of the peak hit in 2012.<\/p>\n

\"Equity<\/p>\n

Source: State of Mineral Finance 2019<\/p>\n<\/div>\n

Nothing ventured nothing gained<\/h3>\n

Toronto’s stock exchanges managed to bump its share of global exploration capital raised to 44%, but\u00a0 juniors hoping to raise money on the TSX\u00a0and TSX-V found it tough going.<\/p>\n

The value of equity raised by juniors on the TSX and TSX-V decreased by 58% and 23% in 2018 respectively. A drop in the number of transactions to 83 from 151 on the TSX and on the TSX-V to 885 from 1,178 also suggest\u00a0a narrower distribution of funds\u00a0across market participants.<\/p>\n

Most concerning for the industry is the 60% year-over-year drop in bought-deal financing for junior explorers to just $600m in 2018\u00a0from $1.5 billion the year before.<\/p>\n

This is the lowest figure recorded in a decade and since bought deals inherently exposes underwriters to high levels of risk it “hints at a lack of sector confidence by large brokerages,” according to the authors.<\/p>\n

\"Equity<\/p>\n

Source: State of Mineral Finance 2019<\/p>\n<\/div>\n

The post Equity markets sour on junior mining sector \u2013 report<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"

Global financing earmarked specifically for exploration more than halved last year and now represents less than a quarter of the 2012 peak.<\/p>\n

The post Equity markets sour on junior mining sector – report<\/a> appeared first on MINING.com<\/a>.<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-gradient":""}},"footnotes":""},"categories":[404,369],"tags":[25,33,48,351,102],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1103220"}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1103220"}],"version-history":[{"count":1,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1103220\/revisions"}],"predecessor-version":[{"id":1103221,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/1103220\/revisions\/1103221"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1103220"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1103220"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1103220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}