THE AUSTRALIAN Securities Exchange (ASX) has sent 5B queries to at least 14 listed explorers after reviewing concerning quarterly reports.
The ASX says it is trying to determine whether companies low on funding can survive the next quarter.
According to Rio Tinto, investors in explorers with no operating mines should expect an increasing number of 5B queries over the next two years as existing funds are drawn down and access to new capital becomes increasingly tough.
The ASX reports exploration companies are handling the downturn differently. Some are reverting to hibernation in an attempt to conserve cash. Obviously geologists, drill rigs and geophysical surveys still aren't cheap however halting exploration is hardly ever a smart move for an explorer although some have no choice.
Certain explorers are selling assets in order to generate cash with some forced to sell their primary projects.Other fortunate firms have made deals with service suppliers, some agreeing to a moratorium on payments or other more flexible re-payment options.
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