Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Metanor Resources MEAOD

Metanor Resources Inc is engaged in the production and sale of gold as well as acquisition, exploration, and development of mining properties. It projects include the Moroy Project and Barry project among others.


OTCPK:MEAOD - Post by User

Post by romaraon Mar 03, 2015 4:10pm
124 Views
Post# 23485460

3 Billion in Jr. Companies Working Capital To Vanish

3 Billion in Jr. Companies Working Capital To Vanish
Off Kitco: team makes sense of the madness. $3 Billion In Junior Companies Working Capital To Vanish – John Kaiser By Alex Létourneau of Kitco News Monday March 2, 2014 11:22 AM (Kitco News) - While there is still hope within the junior resource sector, John Kaiser, founder of Kaiser Research, isn’t painting a pretty picture for some companies. Speaking at a keynote program at the Prospectors & Developers Association of Canada’s 83rd convention in Toronto, Canada, Kaiser outlined how badly the junior resource sector is hurting. He said, “717 companies have negative working capital, 291 have between $0 and $500,000, 554 still have between $500,000 and $20 million – those are the ones that are most likely to survive.” “How bad is this situation? The companies that have negative working capital are trading below 30 cents, totaling almost $3 billion to service providers, to the executives’ salaries – this money will never be paid back in cash,” he said. “It will be settled for paper, which will then be rolled back and then it is just going to vanish. This is a huge hit to the system right now,” he added. Kaiser pointed out the change within the sector, noting that many junior companies are now taking their discoveries further down the pipeline. “An important thing that many people do not understand is that in the last decade, the anti-resource junior space [with] its professionalism, is the level of technical work that they did. It is no longer a story of generating a target, poking holes at it and doing a happy dance when they hit something, and then a major comes in, farms in or takes it up,” he said. “Now the juniors are taking these things all the way through to feasibility.” In turn, this has now affected the way potential investors look at investing in a junior resource company. It’s already difficult to find a proper investment, he said, and now expectations have been raised, meaning juniors will need more capital to advance their projects. “The audience out there, their expectations are now substantial and all these pretend companies that the brokerage industry polluted the system within the past decade, they are simply just going to fade away,” he said. By Alex Létourneau of Kitco News aletourneau@kitco.com Follow Alex Letourneau @alex_letourneau
<< Previous
Bullboard Posts
Next >>