Issue link: http://resourceworld.uberflip.com/i/229125
fiscally or have a definitive weakness like a lower grade let's say," he added. "However, they might still be attractive to a second-tier or third-tier mining company that wants to increase its size or, in the case of gold, are looking at what amounts to a long call option on the gold price. By which I mean that if gold went to $2,400 per ounce then the acquisition will "[Many] companies are using their last bullets on exploration programs and praying that they can come up with a hole that makes the rest of their exploration a self-funding type of thing," Kaiser said. "Excellent discoveries are needed – ones where everyone else is blown away but could have been seen coming if you'd paid close attention. And it needs to be "Many aquisitions are now essentially free when it comes to exploration dollars" look smart because it was concluded at a market bottom," he said. Another round Ultimately, the need to advance a flagship project is the top priority for those still trying to reach a higher tier and to accrue the greater market interest and additional fiscal security that comes with this. For many, this will require steady nerves and the acceptance of great risk. with companies that haven't done hideous rollbacks or marginalized most minority shareholders." "We need mom and pop and a whole range of other investors to start making money for all the right reasons. This is when others will see what's happening and start buying back into a stock," he added. "And the market is still primed to jump in once it has evidence of a major new discovery. However, the act of jumping might be a little slower because the market was badly burned several times over the past few years." As 2013 fades and we enter 2014, it seems likely the bottom has finally been reached. However, the fundamental issues for mining companies will remain embedded for some time to come: illiquidity in a fatigued market; the need to douse cash burn; the opportunity to joint-venture or divest secondary projects; and, if possible, the effort to advance flagship properties. It will be hard road ahead. "I feel that the next year or two is going to be pretty flat and, personally, I don't see a rebound," Mason said. "Companies in production, near production or with some other overall strategic attractiveness will continue to raise equity and might be involved in M&A. There might be some large mining IPOs [initial public offerings] in the pipeline for next year … But a lot of the juniors will continue to struggle. For them, it will still be about finding ways to keep their dreams alive." n With an abundance of undiscovered mineral potential, Yukon is attracting attention from around the world. Come see us: � Mineral Exploration Roundup 2014 in Vancouver, British Columbia January 27 to 30, 2014 � PDAC 2014 International Convention, Trade Show & Investors Exchange in Toronto, Ontario March 2 to 5, 2014 MiningYukon.com D E C E M B E R / 7.375x4.7 RW 300cmyk.indd 1 JANUARY 2014 EMR minerals RW December 2013.indd 35 Government www.resourceworld.com 35 12/6/13 4:40:21 PM 12/11/2013 6:12 PM