Mining sector finances on the rocks
Mining companies face severe fiancial pressures
The mining sector faces massive problems refinancing and insolvency looms
over some businesses, warned
Ernst
& Young.
In its quarterly mining review, E&Y found that AIM mining stocks were hit
as shareholders looked for less risky investments.
E&Y said it was concerned that the sector was unable to raise finance for
exploration projects as banks curbed lending.
For some early stage companies there could be severe consequences, with
projects put on hold or companies entering administration.
More mature mining stocks with depressed share prices could find themselves
the target of a takeover.
Further reading:
China’s crush on coal costs economy
$250bn a year
Criticised companies come top in
CSR reporting