Accounting firm EY (Ernst & Young) Newly released “ Australia 2015 Mining and Metals M&A, Acquisitions, and Financing in the First Half of the Fiscal Year ” The report shows that mining investment and M&A in Australia remain sluggish, primary and mid-tier mining companies are facing funding shortages, and competition for financing is intensifying.

　　According to the EY report, Australia 2015 The volume of M&A deals in the mining and metals industry in the second quarter of the year was... 14 The pen, except for Australia’s mining giant BHP this year. 5 The month saw the divestiture of non-core assets to form a new entity. South32 Generated 87 In addition to the billion-dollar transaction volume, the total value of M&A deals was only 8,100 Ten thousand U.S. dollars. In the second quarter, trading volume and transaction value declined compared to the previous quarter. 19% and 35% Globally, in the second quarter, the volume and value of mining and metals M&A deals increased quarter-on-quarter. 2% and 13% , to reach 86 Total count 214 hundred million dollars ( Not including South32 Split transaction )。

　　Paul, Head of Mining and Metals Transactions at EY Oceania ? Murphy (Paul Murphy) Point out, 2015 For the remainder of the year, Australian mining M&A deals are likely to focus on the gold and coal sectors. In terms of financing, during the first half of the fiscal year, the volume of follow-on equity offerings, bond issuances, and convertible bond issuances in the mining sector all saw significant increases—aligning with initial public offerings. (IPO) The stagnant market situation stands in sharp contrast. In the first half of the fiscal year, the vast majority of unrated and junior securities issuance transactions were below... 100 Ten thousand US dollars, of which globally... 42% The subsequent financing and new share issuance took place on the ASX. (ASX) The funds raised are mostly used for daily management and operations, with a small portion allocated to mineral exploration.

　　Murphy said that, unlike small mining companies, large mining companies can secure financing at relatively low costs when necessary. “ For junior and mid-tier mining companies, the competition for financing has become fiercer than ever before. They are struggling to navigate a securities market characterized by heightened risk aversion and demanding lenders. ” Whether or not they can secure financing smoothly is considered one of the three major business risks faced by mining companies—and also the greatest risk confronting mid- and lower-tier miners.

　　The report points out that in recent years, changes in the market environment have spurred the proliferation of alternative financing channels, such as royalty payments, high-yield bonds, pre-financing underwriting, and equity-linked investment instruments. Murphy cautioned that while these channels can provide companies with the funds needed to keep their operations running, they also come with certain risks and challenges. “ Emergency rescue ” Funding can enhance capabilities, but it also increases complexity and introduces risks. If the financing strategy is poorly planned, it could jeopardize the company’s development. “ Therefore, no matter how strong the demand may be, before seeking financing, businesses must ensure they’ve thought things through carefully. ” He suggested that mid- and lower-tier miners should reassess their working capital to free up more cash. Reconsider the consumption tax. (GST) Fuel tax rebates and R&D (R&D) Incentive mechanism—get all the funds you’re entitled to. “ Meanwhile, junior and mid-level mining companies need to highlight their project strengths and competitive advantages to attract counter-cyclical investors. Be fully prepared and ready for the moment when deals come along. ”。