Time for Mining Deals Down Under – Deal Journal – WSJ

Time for Mining Deals Down Under – Deal Journal – WSJ.

MELBOURNE–Shares in Australia’s smaller mining companies have been particularly hard-hit in recent weeks, a shift that could spur a round of deal-making while equity valuations are depressed.

Reuters

Remotely controlled tipper trucks operate at a Rio Tinto iron ore mine in Western Australia.

“I’m not sure everyone has noticed just how badly hammered the junior sector has been,” said Jonathan Downes, managing director of Ironbark Zinc Ltd., a metals explorer in Greenland and Australia. “Everyone is a little shell-shocked.”

Junior miners are small companies developing, or seeking to develop, a resource deposit. Like start-ups in other industries, they often are in need of funding as they try to expand or build a mine, or are looking to be bought by a larger company.

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