Miners hoping next boom has begun By business reporter 7 Jun 2016 The mining industry was given another reality check today, with accounting firm PricewaterhouseCoopers calculating resources firms have written off $200 billion against their assets' book values over the past five years. But, despite the gloom around the resources industry, there are signs the next boom may have started. Commodity prices have recovered from their February lows, share prices have surged, and investors are throwing money at previously unloved explorers. "We've got money in the bank, we've got an active drill program, it looks like we're getting some good initial results and it doesn't get better than that until you drill the big one," said Dr Mike Jones, managing director of Impact Minerals, one company hoping to strike big. Impact Minerals is a small explorer with projects near Broken Hill and Dubbo that are showing early promise. Andrew Forrest, the former chief executive of Fortescue Metals, is a major shareholder and the company recently raised $1.8 million from investors without breaking a sweat. "Our office is in West Perth and there has been a definite change in the walk of people in the street just over the last two or three months," Dr Jones said. "Most of us are out there with genuine explorers, we have been struggling to survive over the last few years, and now money and life is coming back into the business." Gold miners a standout The Australian materials index has gained 30 per cent from its February lows, capital raisings have increased, and companies have been preparing to list on the Australian Securities Exchange. "There are several deals which are now in the wings, and the quality of them looks quite encouraging as well," said Hedley Widdup, a fund manager with Lion Selection Group who invests in the resources industry. "They are not just a listing of an explorer, they are listings of things which look quite reasonable."
Miners hoping next boom has begun By business reporter 7 Jun 2016 The mining industry was given another reality check today, with accounting firm PricewaterhouseCoopers calculating resources firms have written off $200 billion against their assets' book values over the past five years. But, despite the gloom around the resources industry, there are signs the next boom may have started. Commodity prices have recovered from their February lows, share prices have surged, and investors are throwing money at previously unloved explorers. "We've got money in the bank, we've got an active drill program, it looks like we're getting some good initial results and it doesn't get better than that until you drill the big one," said Dr Mike Jones, managing director of Impact Minerals, one company hoping to strike big. Impact Minerals is a small explorer with projects near Broken Hill and Dubbo that are showing early promise. Andrew Forrest, the former chief executive of Fortescue Metals, is a major shareholder and the company recently raised $1.8 million from investors without breaking a sweat. "Our office is in West Perth and there has been a definite change in the walk of people in the street just over the last two or three months," Dr Jones said. "Most of us are out there with genuine explorers, we have been struggling to survive over the last few years, and now money and life is coming back into the business." Gold miners a standout The Australian materials index has gained 30 per cent from its February lows, capital raisings have increased, and companies have been preparing to list on the Australian Securities Exchange. "There are several deals which are now in the wings, and the quality of them looks quite encouraging as well," said Hedley Widdup, a fund manager with Lion Selection Group who invests in the resources industry. "They are not just a listing of an explorer, they are listings of things which look quite reasonable."
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