The STRONG WILL Survive/PEM Nationforecasting a shakeout at the speculative end of the market as financing for mineral exploration dries up.
“If you are a junior mining company in the exploration world, you will probably have a very difficult time raising money, especially in a volatile market,’’ said Joe Mazumdar, a senior market analyst with Haywood Securities in Vancouver.
Mazumdar said it means investors with an appetite for risk will soon be looking around for cashed-up companies, with projects in low-risk jurisdictions that are already financed and headed by management teams with a proven track record for exploration and development success.
“There is a lot of aversion to risk out there,’’ he said.
One industry veteran agreed with that view. Having experienced all of the exploration game's highs and lows