NEW YORK Investors in the
mining community are looking for projects that will provide
short-term returns, according to Dave Kanagy, executive
director of the Society for Mining, Metallurgy and Exploration
"Investors are very cautious.
They want to see better returns," Kanagy told AMM in
advance of the SMEs Current Trends in Mining Finance
Conference in New York later this month.
The market has not given the
returns investors would like to see, he said, so those with
cash are on the lookout for immediate projects.
Investors are willing to fund
short-term projects in politically stable, mining-friendly
locations, Kanagy said. "Brownfield expansions are the most
attractive opportunities right now," while the appetite for
greenfield sites is limited.
Companies will need to consider
the mounting number of nontraditional financing options as well
the traditional routes in order to determine the best way to
raise capital, Kanagy said.
At the moment, capital is mostly likely to come from sources
such as private equity and sovereign wealth funds, with South
Korea and Japan in particular looking to make acquisitions,
according to Tim Alch, vice president and senior minerals
business analyst at Behre Dolbear Group Inc. Mergers and
acquisitions also are likely to increase going forward, he