Junior mining's lost year gives way to a brighter 2020
Junior miners barely beat 2015 numbers in total dollars raised, said Kai Hoffmann, CEO of Oreninc, explaining just how bad financings have been when you can compare the past year to a time when gold was slumping around the $1,100 to $1,200 range.
Hoffmann spoke to Kitco today. Oreninc tracks financings of companies in the resource sector that are listed on the TSX.
Hoffmann partly blamed the awful 2019 on a slow start and a general dis-interest in junior mining space. It wasn't until later in the year when precious metals started spiking that investors took notice. And recent developments have turned more heads.
"With gold now peaking at over $1,600 and all the geopolitical issues, that's all changing," said Hoffmann.
In the first few days of 2020 Hoffmann said money is coming back to space. He notes that the African explorer Orezone committed to a $20 million bought deal, and Talisker Resources raised $13 million.
"It took until week eight of last year until we saw the first bought deal. That tells you that banks are at the table, the brokers are available. They are seeing more opportunity now."
Better still, Hoffmann notes that sectors that competed with juniors are also waning, namely cannabis and crypto.
Listen to our interview with Kai Hoffmann.