Mining Sector Finance Trends — Who’s Getting Funded and How?

Sentiment in the junior resource sector remains subdued as companies struggle to raise money to move forward.

But Joe Mazumdar, editor of Exploration Insights, said it’s still possible to find firms that are seeing success.

“There are opportunities where people have access to capital,” he told the Investing News Network. “If you like companies and you think they’ve got a really good project, this is an opportunity to start slowly building up a position in those.”

Mazumdar is seeing a shift in where explorers get money, with more major mining companies stepping up.

“A lot of the financings for the juniors that have projects and people working in jurisdictions that companies would like are getting funded by industry,” he said, adding that while large miners have always had some involvement their role is increasing.

Aside from financing, Mazumdar shared his thoughts on a variety of mining industry issues, including the impact of this year’s wildfire season, lithium-mining technology and the viability of deep-sea mining.

Speaking about lithium, he explained the difference between hard-rock and brine deposits, and touched on direct lithium extraction, a new technology that has yet to be commercially proven. “It’s still a big risk, it’s a technology that’s up and coming,” he said. “That’s where we are there. But that could have a big impact on the lithium production sector if that works.

When it comes to deep-sea mining, he said although there are ESG concerns, he doesn’t think they’ll be the main problem. “For me personally, I think the economics will dictate more so than the ESG impact that this is not viable,” Mazumdar said.

Watch the interview above for more on those and other topics. You can also click here for our Rule Symposium playlist.

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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.