Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
This video and accompanying infographic from last year explains the basics of raising capital in the mining exploration sector. It covers: private placements, warrants, hold periods, and much more.
Mining exploration is a notoriously capital intensive sector. Because companies typically generate no or little revenue, they must go to the capital markets with the lure of creating the next big economic discovery.
These dynamics create the risk and reward in the sector that make it unique, but they also create a barrier to entry for average person. Many regular investors that trade stocks and mutual funds do not know how private placements, warrants, or hold periods work.
About a year ago, we worked in conjunction with VADAR and Cambridge House to create this video (and the infographic below) to educate investors on the nuts and bolts of raising capital in the mining sector.
Jeff Desjardins
