Business / Economy
Keep an eye on cash-flush miners, says Imara
23 Mar 2011 at 11:06hrs | Views
In the coming year, watch out for a spate of new exploration projects in the resource sector, a fresh wave of feasibility studies and renewed merger and acquisition activities among the mining companies.
The prediction comes from the Imara African Resources Fund, an equity fund with dedicated focus on mining companies that are primarily active south of the Sahara.
Fund manager Bruce Williamson bases the forecast on the cash-flush position of many players in the mining industry.
He points out in his latest report to international investors: "There are far too many resource companies to mention that have just reported interim or final results of plus 50% growth in bottom line earnings! Increased volumes and high commodity prices have greatly boosted corporate cash holdings.
"This sets the 2011 scene for more exploration, added pressure to speed up feasibility studies and no doubt a step-up in M&A activity."
The prediction comes from the Imara African Resources Fund, an equity fund with dedicated focus on mining companies that are primarily active south of the Sahara.
Fund manager Bruce Williamson bases the forecast on the cash-flush position of many players in the mining industry.
He points out in his latest report to international investors: "There are far too many resource companies to mention that have just reported interim or final results of plus 50% growth in bottom line earnings! Increased volumes and high commodity prices have greatly boosted corporate cash holdings.
"This sets the 2011 scene for more exploration, added pressure to speed up feasibility studies and no doubt a step-up in M&A activity."
Source - Byo24News
