Gloomy conditions continue for global stocks

TOUGH conditions continue to weigh on global mining stocks, with financings at the junior end of the Toronto Stock Exchange the only bright spot over February.

Andrew Duffy

Total financings by junior companies on the global scale rebounded last month after a poor start in January, new data from SNL Metals and Mining showed.

Last month there were 21 financings of over $US2 million ($A2.6 million) and the total amount raised came in at $642.1 million.

Companies listed on the TSX accounted for 95% of the total, with share issues making up 88% of the funds raised.

Things remained gloomy in other parts of the global industry, with SNL’s metal price index also declining over February.

The number of projects reporting drilling activity fell to 113, down from 160 in January.

Gold accounted for 59% of the total, with 67 projects reporting results, but the sector still moved back slightly after an increase in January.

Projects reporting copper assays fell from 26 to 18, with reports from nickel and silver projects both halving to eight.

Drilling activity for other metals was little changed.

Elsewhere, five initial resources were announced in February – valued by SNL at $2.72 billion.

Almost 68% of those announcements came from companies on the TSX, with base and other metal resources accounting for $2.24 billion of the total.

By comparison initial resources were valued at $11.8 billion in December and $13.8 billion in January.

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