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European law firm Fieldfisher has released the fourth edition of its flagship mining finance guide.
The report, "Financing for Mining: Going to ground", gauges the state of the financing market for early stage mining companies, and traces developments since Fieldfisher published its last report: "Alternative financing for mining: New Horizons", in 2020.
When Fieldfisher published its first mining finance guide in 2016, the title “Alternative financing for mining” was appropriate, as many of the funding sources identified were relatively novel.
In 2023, however, our report determines that what were once considered “alternative” funding routes are now routinely considered alongside traditional forms of finance.
The report outlines that mining finance continues to be complicated to secure, however, with conditions for financing remaining essentially unchanged in the past two years, and early stage mining companies still struggling to advance exploration projects through to production.
This stifling of new projects has prompted governments to establish special funds for the development of certain strategic and critical minerals, provided they can demonstrate strong sustainability and ESG credentials.
Meanwhile, the private sector continues to conjure inventive ways to raise finance, such as the increasing use of digital assets and crowdfunding.
While the standardisation of previously unconventional areas of the mining finance market has yet to translate into any meaningful increase in project development, Fieldfisher's report concludes that successful fundraising can be achieved with the right approach.
Download a copy of the report here.
Commenting on the new report, Fieldfisher's Head of Mining and Metals, Jonathan Brooks, said:
"Thanks in large part to the efforts of specialist advisers in elucidating what were formerly obscure and under-utilised areas of the financing market, mining companies today have a much greater choice of funding options for developing projects.
"Each financing route carries benefits and risks, which mining companies must carefully assess against the unique features of their projects. However, newer forms of financing are now much better understood and have proven track records, which has helped build confidence and keep projects moving that might otherwise have stalled.
"While it remains challenging for early stage miners to secure appropriate financing, there are positive signs that the need to support production of critical minerals, at least, is rising up the international political agenda."