[miningmx.com] – SHRINKAGE in the mining sector had impacted on the ability of mining companies, especially juniors, to raise capital and access debt, said the Financial Times citing a survey by Ernst & Young.
The newspaper said funds raised by mining and metal companies fell more than a quarter in 2012 compared to 2011. This represented the first annual decline since the 2008-09 global financial crisis.
Ernst & Young estimates that capital raising by miners and metal companies amounted to $249bn in 2012, down from $340bn in 2011, because of a sharp drop in proceeds from initial public offers and syndicated bank loans, said the Financial Times.
As a result of the dearth in debt funding, mining companies had sought out finance through corporate bonds, the Financial Times said.
