Hi @speculator101@plough It's the same story throughout the rest of the world's gold exploration sector. Cashed up miners are letting the explorers bleed out as capital market funds dry up.
What options do exploration companies have?
1.Raise less and reduce cash burn/exploration expenditure. 2.Merge with nearby entities to create a larger regional scale/more marketable company. 3.Seek JV's with larger partners to fund exploration. 4.Spin off non-core assets. Have I missed any???
1. We are already witnessing this phenomenon as the raise amounts are piddling compared to this time 3 years ago. 2. My bet is we are about to see a substantial uptick in regional consolidation of assets as shareholder wallets close even tighter. 3. Only the best projects with nearology will receive JV money. 4. No appetite for spin offs in this economic environment.
The trick is to find the most desirable targets. I have been working on a Exploration grading system for such a thing.
When will this M&A explosion occur? That is the million-dollar question. I truly believe that a gold price sustainably above $2,100 USD will be the required spark to light the M&A fuse!
WGX Price at posting:
$1.47 Sentiment: Buy Disclosure: Not Held
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