Gold gains for third day before US data that may shape rate path
Bullion traded near $2,670 an ounce — touching the highest since mid-December.
Contained in PriceWaterhouseCoopers’ Thursday report on mining deals was a chart showing just how steep the drop off has been in equity financings.
After a high-flying 2011, the money dried up in 2012.
Looking ahead, the authors do not see much relief. Equity investors will be “content on the sidelines” until the markets come back. Cash-strapped juniors will have to seek other financing alternatives.
2012 saw much resistance from junior mining executives unwilling to hand over their company at current valuation. With dwindling cash, challenging equity market and senior miners focused on cost containment, not M&A, juniors may not be able to run their backs on opportunist offers from intermediate mining companies in 2013.
Dog picture by Bad Apple Photography
2 Comments
Fred Stubbs
Most capital intensive drilling has either shut down or will shut down soon.
Yukon Redneck
Something fishy about these charts. An average of $580M PER MONTH was raised in equity financings on the TSX-V in 2012; It didn’t all go into O&G, IT and biotech. These graphs might be only of PwC “big boy” M&A or financing deals only (or something else). TSX-V financings are averaging ~$300M per month this year: What are PwC’s graphs going to look like next year?