Fund Managers Slam Miners

The big surprise at the London Mines and Money investment conference has been the extent of criticism directed at companies (rather than the expected expressions of sympathy). Funders have been saying that there is money for good projects. Companies complaining about a capital shortage have been overstating the quality of their projects. That has been a common complaint. Companies valuing projects with a 5% discount rate when the cost of capital for fund managers is 14-15% were told to get real. One major fund manager said he had never seen such a wide bid-offer spread. The demands for asset repricing are strong. Companies are being urged to decide whether they are going to develop their assets or sit out the remainder of the cycle.