In an interview with The Gold Report, the publisher of Mining Speculator newsletter Greg McCoach said current market conditions won’t improve at least until 2014, causing several junior miners currently hanging by their fingernails to go out of business:
“There are only so many talented teams of professionals in the industry that know how to make the discoveries that can be developed into producing mines. When you look at the monies that have been raised in this sector in the last 5–10 years, we have very little to show for it. All the low hanging fruit has already been discovered,” says McCoach.
His words echo senior geologist Brent Cook’s predictions early this year, when he said that at least one third of junior miners would disappear by the end of 2013.
And the latest Ernst & Young’s annual Business risks facing mining and metals 2013–14 report, also support these theories, saying that small firms exploring for mineral deposits worldwide, will continue to be cash strapped for at least another year.
The good news is all of them see quite the light at the end of the tunnel. In McCoaach words: “when the market does recover, it is going to be a screamer.”