In early December, PWC released a report on junior miners coinciding with the Mines and Money Conference in London stating measures to cushion capital shortage with used mining equipment. In 2007, of the top 50 AIM mining companies listed on the main board, eight were acquired and 13 reported no revenue. Overall there was an 81% increase in revenue due to the rise of commodity prices; but despite this, profitability decreased. 2008 started on a high as these companies were using their existing cash resources but a lot of internal funds had been used, so they did not have cash to expand.
Lambert says that the market capitalisation for AIM in 2007 was £11.8bn at the end of December 2007 but by the end of October 2008 it had fallen to just £3.2bn. Junior miners are therefore taking steps to ensure they appear more profitable despite the difficultly of securing extra financing by the end of the year.
Lambert says that the market capitalisation for AIM in 2007 was £11.8bn at the end of December 2007 but by the end of October 2008 it had fallen to just £3.2bn. Junior miners are therefore taking steps to ensure they appear more profitable despite the difficultly of securing extra financing by the end of the year.
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