Exploration is down, and going out, so guess what might be...

Exploration is down, and going out, so guess what might be coming after this. Junior sector is dried up. Majors have cut their staff, most near totally...but this will not effect the physical supply side? Toronto is the major capital raising center for the Minerals Industry....read on.


Canada’s mineral exploration sector faces capital crisis

In the midst of ongoing economy uncertainty, the risk tolerance of investors has dropped, drying up the sources of capital upon which junior mineral exploration companies depend. This capital crisis is particularly pronounced for companies engaged in high-risk grassroots exploration.
In 2012 expenditures on exploration dropped by $700,000 to $2.2 billion compared to $2.9 billion 2011 and are projected to decline further to $1.8 billion in 2013 – an almost 40 per cent drop. The number of junior financings in 2013 has fallen by approximately 25 per cent from 2012 levels, reaching the lowest level in 15 years, while the value of financings has decreased by nearly 60 per cent.

Nearly half of junior explorers have working capital balances of less than $200,000 while more than 340 have less than $50,000. Mineral exploration is the lifeblood of the mining industry and sustained exploration is required to discover new deposits; financial health must be restored to the junior sector to ensure the future viability of Canada’s mining industry, an industry that accounts for 3.9 per cent of the economy and employs 320,000 Canadians.

PLUS....

http://www.pdac.ca/docs/default-source/public-affairs/2013-10-06-kpi-report---fpt-mineral-statistics-presentation.pdf