TEN BUSINESS RISKS

For many , if not all mining companies , raising capital is one of the biggest issues . According to EY , the total capital raised in 2015 was 10 percent lower YOY . Add to this that loan finance to the sector was also declining and those that did secure loans were using them to refinance existing infrastructure as opposed to delving into new projects .

Companies are facing limited access to capital as banks are only offering financing to mining companies what can guarantee the security to back the debt . In essence , a bank isn ’ t willing to take a risk on a mining company that can talk the talk , but not walk it .

Heading into the new year , mining companies will be looking at alternative sources of finance and in some cases , realigning portfolios to mitigate this challenge .

29