Junior Miners – where to from here? · Junior Miners – where to from here? ... Introduction • Mining sector is a core industry sector at Grant Thornton • Significant stress

© 2015 Grant Thornton Australia Ltd. All rights reserved.

Holly StilesNational Industry Leader – Energy & Resources

24 June 2015

Junior Miners –where to from here?


Introduction

• Mining sector is a core industry sector at Grant Thornton • Significant stress in the sector• Current trends• Key challenges• AMEC collaboration with our JUMEX Report


Junior miner population

Source – Capital IQ and Grant Thornton analysis


IPO Statistics

Source – ASX statistics and Grant Thornton analysis


IPO Statistics – Mining companies



Backdoor listings



Exploration activities

Source – Australian Bureau of Statistics


Insolvencies of mining companies

Source – ASIC statistics


What are we seeing now?

• Challenges from all angles• Momentum of response is starting to build• Trend for mining projects to stay privately held• Refocus on Australian projects• Commodity selection• Need for focus and clear strategies• Need to be creative to add value for shareholders• Embrace innovation• Very strong interest in shells• Trends for producers


JUMEX Report

• Survey ASX listed mining companies with a market cap of less than $500m• Collaboration with AMEC• 2015 is 6th year


JUMEX Survey – 2014 results

• funding constraints at crisis point for some• very strong competition for capital• commodity price volatility is a major constraint to business• regulatory challenges persist• ongoing constraints will limit operational activities• future discovery pipeline weak• employment conditions remain depressed• M&A outlook is up• early signs of hope that investor interest may be starting to improve


JUMEX 2015 - have your say…

Booth No. 34

www.grantthornton.com.au

Documents

Junior Miners – where to from here? · Junior Miners – where to from here? ... Introduction • Mining sector is a core industry sector at Grant Thornton • Significant stress