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.
Despite the gloomy sentiment in the junior mining sector, Kai Hoffman, CEO of Soar Financial says last year was actually pretty good in terms of total funds raised.
However, Hoffman, who focuses on companies with a market cap of under $1.5 billion that raise less than $100 million, says there’s been a “bifurcation” in the market. He confirmed that cash raised last year went to developers and late-stage explorers, with earlier exploration stage companies having a tougher time raising funds.
“We’ve seen a record amount of cancelled deals last year where companies announced the financing but they couldn’t fill it — so they cancelled it or changed the terms,” Hoffman said. “That’s something we hadn’t seen too much in the past.”
Hoffman spoke to Henry Lazenby, western editor of The Northern Miner, at the Vancouver Resource Investment Conference (VRIC) in Vancouver. Watch the full video below.
