Investor confidence in small caps are at very low levels , money had headed for the sidelines or gone to the dividend yielding stocks. Too many shenanigans by directors, promises never kept, big stories to suck in investors, dodgy trading activities. It also doesn't help that governments around the world are strapped for cash and are changing the rules for the miners.
How many rare earth companies have got into production .. one - Lynas and they've been at it ten years. Uranium producers? .. can't think of any except Paladin in production. EXT was promising but got taken over. How about that potash and phosphate boom. Thought there was supposed to be a big shortage and the world needed to fed. How many small gold companies have promised big profits but can barely reach nameplate production or even cover their total cost of production? The list of failures just goes on . The small cap end is littered with the walking dead , shambling about like they're alive and actually doing something, just waiting for some fresh investor meat to come into range. We need more success stories to boost confidence. Some people have been burned too many times and will never come back but money will eventually return to the smaller end... it always does , but who knows when.
