File under not good.

Interesting article here on Miners and Financing. Bottom line is it really sucks to be a miner right now looking for money.
"High-yield debt is also creeping back into the system, though it is only an option for existing metal producers. In April, New Gold Inc. raised US$300-million in a 7% senior notes offering that has traded well ever since. It was the most notable gold financing of the year and has drawn a lot of attention. Both HudBay Minerals Inc. and Coeur d’Alene Mines Corp. also announced debt deals, but they were called off when market conditions deteriorated and the companies could not get the terms they expected."

If this keeps up then we will see the miners hedging again, consolidations where there are cash rich junior targets and a lot of companies folding because their CEO's suck. File under not good.

1 comment:

stain said...

This stuff is great: