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Surf’s up! CAML CEO sees junior mining M&A wave coming

Friday, August 23, 2013 - 04:10

Aug. 23 - Central Asia Metals CEO Nick Clarke says takeover action is on the horizon for the junior resource sector because they are finding it hard to raise funds.

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Big cap basic resource produces have been struggling against weak up prices and -- top level grip -- what they're smaller rivals. Make up she expected a central Asian missiles joins me now thanks so much out of being here with us. What seemed like. Given that the big airplane as a struggling with all these headwinds. We'll simply chemicals and what will we operate a small cup of producing facility in Kazakhstan. We listed in late 2010 raising sixty million dollars. Since that time we've built a project we produce copper and we started paying a dividend. So we've done fairly well -- -- you know pull -- it over the last few years and we hit two window of opportunity but he he's been have real struggle for a lot of the small. Contemporaries and friends of mine who in the -- sector. -- I know you shares are up and as you say you're paying dividend which is he -- rare and they aim listed. Mining or producing space. What are you doing going forward to shield yourself from. A weakening of prices because obviously that we twelve go way production is going to come online and seeing what she tainted made sure you keep. Profitable. What we're learning a small producer we produce about 101000 tons of about cathode copper. And of course we don't affect the overall price -- price of culpa but what we can do is control our own internal costs. Our cost cash cost of operation is -- 98 cents a pound and today compass setting internationally for about three dollars thirty pound. So what I can do is control my own internal costs and ensure that might cost base is well below any level whether the act. Couple may get to mean you know bad in a bad period. And other operations one of the biggest challenges do you think that's facing a list that uses today. Well obviously access to money. Equity is still very difficult to come by the investment community the fund managers seem to be wary of the resource sector that's been so much bad news coming coming out and there's a lot of taxes not bunnies. But I think that isn't really being borne out by the actual lines of come commodity prices. A length I can see the green shoots I hate that to use that term but they seem to be a change in sentiment somewhat. Towards I think the second half of these years some more -- funds coming back in the mining sector. Now has been an Anderson reports about the oil minus. Them mine -- but the oil sex. And this report says that there was -- losses. Buzz in on the -- to about potential emanate coming in -- activity because. The weaker ones are finding it really haunts him to actually raise cash. You mentioned this and you'll you'll neo -- Do you think that the smaller cap mining states that could see -- a today's -- quite soon because of this. I do. I think the news. The lack of funds coming into the junior results sect that has resulted in many projects many companies having good projects but. Do not have the ability to raise the money to take those projects forward debt is very difficult. Even if you can get debt. How do you raise the equity low stock prices mean too much dilution for existing shareholders so companies -- court. They can't raise the debt McConnell raising equity so I can see those companies who have some cash. Joining up with those who -- cash starved. To enable some of the good projects to go forward. And just to finish up 10 lead to describe the sex and 2014. It's gonna be exciting I don't think the news that have been coming out of China the unease I think the sector is gonna turn from glass half empty -- glass half full. For an affidavit and my thanks to nick club chief executive of central Asian -- on and -- all. This is what is.

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Surf’s up! CAML CEO sees junior mining M&A wave coming

Friday, August 23, 2013 - 04:10