‘Volatility in the junior #mining sector works for you and against you’
share prices go up these are 90% of the funding that comes into the sector is through Equity so as share prices go up cost Capital reduces as the cost of capital reduces the the sector becomes more attractive so then that in itself brings in more Capital share prices go up and you get into that um sort of self-fulfilling prophecy almost and I think we’re starting to see that if you look at even just last two three months You’ seen these these share prices run and um one of the other issues that I think have made it really hard for companies to raise money is there hasn’t been much liquidity and as share prices run more interest comes in volume starts ticking up institutional money can now finally look at the sector liquidity liquidity for a for a um public company is an asset in itself so as their liquidity profiles increase that also attracts more capital in the flip side of that is if if you see sort of liquidity dry up and share prices fall cost of capital go up you get into that sort of death spiral that feels like we’ve been in almost like a a 10-year desk spiral that we’re just kind of pulling our way out of
Volatility in the junior mining sector works for you and against you, says VRIFY Technology’s Steve de Jong.
Watch the full interview with Jeremy Szafron on @KitcoMining 🔗
#kitcomining #mining #miningsector #juniormining #preciousmetals #gold #copper #JuniorMiners
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