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Global mining outlook falls sharply

http://www.businessspectator.com.au/news/2013/6/5/productivity/global-mining-outlook-falls-sharply



Steel giant warns on iron ore

http://www.businessspectator.com.au/news/2013/6/5/resources-and-energy/steel-giant-warns-iron-ore



The above links show the current vibe within the IO industry. I don't completely trust comments from the Baosteel Chairman as the Chinese often talk down all things IO to soften the market, but there is probably some truth to it.

You only need to read the title of the PwC report in the first link to realize what they are reporting on, "Mine: A Confidence Crisis."

It's in this environment that EQX is currently operating. The market is assigning very low values to the company considering there is no production, no Scoping Study (let alone a PFS/BFS), and no outlined CAPEX funding plan. This is why for some time now I've been saying that I expect this to be a longer slog back up the value ladder than I initially expected.

With an OPEX of hopefully $40-$50p/t, and $50m in the bank (some of which will be able to be used to fund CAPEX, the rest debt/equity), I don't foresee that the company will have major problems getting to production, I just think that the market will hold back on assigning greater value until all of these boxes are ticked.