(Kitco News) - Mining has to do more work to attract investors, said Joanna Ponicka, vice president of exploration at Equivest.
In early May Ponicka spoke to Kitco Mining at Deutsche Goldmesse at Frankfurt, Germany.
Ponicka said the mining sector has a perception problem and that is leading to less funding. A lack of investment in grassroots exploration is leading to a shortage of new discoveries.
"As a prospect generator, we definitely see less money in the industry to do early-stage exploration," said Ponicka. "Early-stage exploration is where most of our discoveries come from."
Ponicka said the industry is going through a "pretty dry period." Ponicka said that technology and cryptocurrencies hold more appeal for younger investors.
"This year there is very little testing new ideas and drilling. I think the entire industry is suffering. It's such a traditional industry. It's also a very risky industry.
Possible solutions are adopting a more modern style of communication, perhaps with more of a focus on social media, suggested Ponicka. Communications need to be more engaging and less corporate, as well as targeted to shorter attention spans.
She also said that more focus on education and success stories could help to attract new capital to the sector. Lastly, sector events need to innovate to become more engaging and educational. Visual representations of projects and teaching investors how to understand good results could be two beneficial tactics.
Coverage of Deutsche Goldmesse is sponsored by Dynacor.
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