Sunday, 16 February 2014

$10bn Wall of Funding waiting in the Mining Sector's Wings

Article at Mineweb
“the money is getting stuck in the funds and not being invested, mainly because the fund managers are doing far more comprehensive due diligences than have previously been done and not everyone is managing to jump the hurdles.” Much of the reason for this, Tyler explains, is that there has been a significant difference between the type of returns that have been promised and what has been delivered.“In the past you had to have a good deposit if you wanted to raise funds, but now you have to have a good deposit and good management. In the past we have had good deposits ruined by poor management; it is easy to do the calculations on the geology, it is hard to do the due diligence on management.”
 Investors have said to the majors, stop investing capex in projects which can’t justify a return, start giving back capital to us as your shareholders 

No comments:

Post a Comment