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PwC: Equity financing and market cap decline

By Rob Starr, Content Manager, Big4.com

According to PwC’s latest Junior Mine report released recently, with the Top 100 junior mines on the TSX Venture Exchange (TSX-V) facing decreases in debt  and equity financing, as well as market capitalization, miners must either reduce spending substantially or turn to alternative forms of financing for growth.

With the IPO market falling silent for most of 2012 – only four mining IPOs on the TSX-V were completed in Q3 2012, compared to 14 in Q3 2011 –Ivanplats’ $300 million IPO however could signal the new beginning for mining executives looking to initiate IPOs that have been waiting in queue for some time now.

Recently, streaming and royalty companies are coming to juniors – providing project financing, while traditional lenders have been cautious, adds Gravelle.  An example of this is Sandstorm Gold’s, this year’s number one junior mining company on the Top 100, current royalty agreement with Magellan Mineral.

Junior Mine covers the Top 100 mining companies on the TSX-V, including financial highlights, exploration, production, development, income statements, cash flow and balance sheet highlights, IFRS conversion and geographic and operational considerations. For more information, please visit www.pwc.com/ca/juniormine. A copy of the report is also available from the media contacts.

 

 

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