juniors beware

The market sort of feels nervous to me, it doesn't feel like the buyers are back with confidence, more like they are testing the waters. I think they will need a few good days, maybe a week or two of stong US closes before they come rushing back.

I am concerned a bit here. Explorers have no income and as such they survive only by capital raisings. If the general market becomes a sustained bear market it will be very hard for junior explorers to get people interested in capital raisings.

In that case it won't matter how good the land they have is nor how many minerals are in the ground, the lack of cash flow will kill them.

That would be the time that the big boys like RIO and BHP would quietly go around picking up cash strapped little companies who have control of good resources but no way to pay the bills.

Smaller producers like PDN will be fine as they have good income, infact they may be like BHP and RIO and grow through acquisition of cash strapped explorers.