Capital Markets Starting to Thaw for Miners: Bankers
- Equity raises, streaming, M&A seen picking up amid price rally
- Between $50 billion and $60 billion needed to stabilize sector
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The biggest rally in mining stocks since the aftermath of the financial crisis is opening the door for producers to return to the equity market in their ongoing battle to reduce debt, according to bankers in Toronto.
While the Bloomberg World Mining Index retreated on Tuesday, it surged 16 percent in the past month, the steepest four-week rally since August 2009. Metal prices have also rebounded, with gold up 19 percent this year. That shift in sentiment may mean that a pickup in equity deals this year will accelerate.