TOP 10
06
Trouble For Junior Miners
The current economic environment of the mining industry has pushed junior miners into survival mode; it’s become a kill or be killed setting. Mounting pressure to boost shortterm profits is forcing many companies to ignore current investments that may potentially lead to longer-term upside. “Juniors are still mired in cost containment and productivity improvement initiatives. Given how close some companies are to the wall, they’re actively seeking strategies to lower their cost profile. Companies are still struggling to raise money and we’re sure to see more retrenchments in this area before these issues are resolved,” said Christopher Lyon, mining leader, Deloitte Chile. According to Deloitte, to capitalize on shifting ownership patterns, juniors should be taking steps to get their assets in order and consider options from partnership and joint ventures to sale and consolidation. SOLUTION: To mitigate associated risks and leverage emerging opportunities, junior miners should get assets in order; consider all options; and prepare for the upside.
28 June 2015