JUNIORS: PwC report – Waiting out uncertainty

PwC has for the eighth time looked at the 100 largest (by market cap) junior miners on the TSXV exchange and taken their financial pulse. They are struggling, but they have the grit and determination necessary to hang on until the economic climate improves, according to PwC.

The measure of how juniors are coping is seen in falling equity financings. In the 12-month period ended June 30, 2014, the 100 juniors raised a total of $685 million, down from $795 million a year earlier. Some turned to debt financing, raising $379 million through those means during the same period.

The PwC publication, titled 2014 Junior Mine Report: Waiting out uncertainty, tries hard to put a positive spin on falling metals prices and the shriveled capital markets that have left the sector on a downward spiral since 2011. Market capitalization fell 41% in 2013 on top of a 43% decline in 2012.

The cash position of the juniors is also decreasing, down to $1.2 billion in 2013 compared to $1.9 billion in 2012. Capital spending is down 15% over all during the same period, with exploration companies shaving 28% off their spending. From 2012 to 2013 the top 100 companies saw revenues fall 25%, especially developers who noted an 85% drop.

Readers can click here to read the current Junior Mining Report or previous versions.