Why one-third of mining juniors are running on fumes
More than 600 mining mining juniors in Canada do not have enough working capital to keep them running through the next 12 months, according to a report released by Prospectors & Development Association of Canada.
Using research compiled from John Kaiser, the PDAC found that 675 listed-companies out of 1,804 have $200,000 or less in working capital.
The report's authors remind us, it is expensive to keep a mining company listed as the many banking, regulatory, lawyer and overhead fees are not going to go away. All the while, there will be little to no money for any sort of drilling, the one productive aspect of running a junior.