Junior Mine 2012 - Must Survive Before You Can Thrive

PwC's POINT OF VIEW

"Where have all the cowboys gone..."

Juniors are echoing the lyrics of Paula Cole's 1997 Grammy nominated hit with their own cry: "Where has all the financing gone..." Regrettably, for many juniors their search is far less romantic and lyrical; instead, their search is much more tragic, for some a matter of life or death. Dramatic – yes – but it's a sentiment which packs a lot of truth.

This year's Top 100 TSXV mining companies saw a 52% decrease in debt and equity financing compared to 2011's Top 100 junior mining companies. Investors are skittish; wary of the volatile market. They aren't looking to add more risk to their portfolios; instead, they are risk adverse and shying away from investments with a high risk-reward ratio. Unfortunately for juniors, this is their "sweet spot".