Gold Junior Mining Companies Suffering, "Bonfire" Coming
Michael Kosowan of Sprott Global, contributing his thoughts at the Cambridge Resource Summit in Vancouver on January 20th, comments that the ‘bonfire of the juniors’ has yet to occur. In brief, junior mining companies are, collectively, in serious financial trouble, and much of the credit extended to these junior miners will not be renewed in 2014. Furthermore, a near term rise in the price of gold will be "too little, too late" to salvage many of the marginal players in the industry.
"The big crisis point could come in April and May of this year when the audited financials must be filed with SEDAR. Credit that was extended in 2013 is unlikely to be extended in 2014, forcing management to dig into their own pockets which could precipitate a flurry of de-listings."
FULL ARTICLE HERE