Diggers and Dealers provides a rare set up for raising fresh capital
Diggers and Dealers provides a rare set up for raising fresh capital. There have been few occasions in the past 5 years where resource companies have been presented with such an attractive platform from which to raise new capital. Sentiment towards base metals and gold space is generally pretty good. A number of mid tier producers who have enjoyed some time in the sun may well use the current bout of optimism as an opportunity to squirrel some cash away for a rainy day. Remember, a number of these businesses have been highly acquisitive, are running old and capital hungry operations with short mine lives and are trading at healthy share prices. With investors being shuttled out for site visits and entertainment around the conference, the chance of substantial capital raisings in the near term looks reasonable. Northern Star and Regis are just a few names that spring to mind.