Following a brisk start to the year when financings for mining and exploration in the Canadian financial markets hit a year-to-date high of around C$800 million in about 180 deals in February, have been on the back foot and trailing lower with each passing month through May where they hit a 2017 low of about $400 million in about 130 deals. Since then, the total amount raised has increased slightly to around $500 million in July in about 120 deals. The value of bought deal and brokered financings have followed a similar trajectory so far in 2017.
Several reasons are advanced for the development of financings so far in 2017. Some market observers suggest that many companies have funded in the past 12 months reducing their need to go to market. The reduced number of sub $1 million subsistence financings also suggests that companies are in better financial health. Furthermore, a lack of M&A activity meaning companies do not need to raise to fill their war chest; and the failure of gold to break back through the US$1,300 per ounce level has curtailed investor appetite in the junior market space.