Finncap’s Martin Potts speaks to Proactive about the hurdles for junior miners and why it’s been a tough few months for some while others have enjoyed success.
”It’s very much a case of right place right time. Those people who’ve been starting up mines recently finance mines with a particular commodity price in mind and then the commodity price has fallen – that’s led to cash shortages and you start running out of money and that squeezes the whole idea of building a mine in the sense that you have to start making capital savings and you have to take shortcuts”, Potts said.
He added: ”One of the great things about mining is that the cycle will always turn because without mining we go back to the stone age”.
Story by ProactiveInvestors