Access to Mining Capital in the Short Term
CIM Vancouver 2016
Mr Matthew Allas (Cantor Fitzgerald)
“Financing mining projects in the current economic climate is a difficult task, especially for small to mid-size companies. Conventional sources of debt and equity finance have been drying up steadily [...], and now with the prices of mining stocks near record lows, a credit crunch [...], and plunging metal prices reducing cash flow, mining companies have few funding alternatives.” That statement was made as part of paper that I presented 16 years ago in February 1999. Though that sentiment is similar today, there are several developments since then with respect to financing and funding solutions available for mining and exploration companies to consider. This paper examines those developments and provides an overview of financing alternatives available to mining companies today plus the trend in M&A we might expect as we move through this period of volatile commodity prices, squeezed operating margins, and general investor disinterest.