The Rare Earth Exploration Space in 2013: A Well- Positioned Company

I just returned from two speaking engagements in London. One issue is abundantly clear. Financing opportunities for most discovery juniors are non-existent and it is imperative that a junior mining company wishing to survive the current capital drought exhibit two factors.  

These are financial sustainability (cash is king, today) and robust project economics.  While most discovery stories seem compelling, at the end of the day they’re just stories.  To ensure survival of the thousands of junior mining companies today, more "meat on the bone" is a musti. Our discussions with institutional money managers in North America and Europe lead us to believe that unless you're a near-term or early-stage producer of gold and silver, nobody cares even at these severely depressed share prices. I think this short term thinking is a mistake as someone who has focused on the industrial metals and minerals sector.

Written by Chris Berry, MBA - [ Discovery Investing Web Site ]