When they don’t, they gradually enter into a capital “Catch 22” – weakened to the point where they cannot sustain sufficient operations or keep projects moving to generate cashflow, but also unable to source affordable funding because they’re not producing cashflow and/or moving their projects forward. They struggle to get out of?
that cycle."Grant Thornton expects mergers and acquisitions in the sector to double this year compared to 2013, but "for some mining companies, a rise in FUT 15 Coins and market upturn may come too late.
One in 10 junior miners are likely to go into administration, and 16% are likely to halt operations temporarily, according to the advisory firm's survey.35% juniors are likely to acquire the 32% of majors expected to pick up other competitors or a unit of another company by the end of 2014. Similarly, 36% juniors and 27% majors expect to be sold or undergo a partial sale."This matchmaking balance between buyers and sellers underscores the likelihood of substantial M&A.
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