Junior miners under the strain of increasing costs are presenting their offers back to the market.

There are four ASX listed junior miners current whose shares are currently in a trading halt.

It is about capital raising.

The latest is PacGold which is focused on the Alice River Gold Project. Pacgold says it was the best performing IPO on the ASX for the 2021-22 financial year.

PacGold is due to make an announcement to the ASX on Friday.

Sunshine Metals (ASX: SHN)and Cannindah Resources (ASX: CDE) are due to provide an update tomorrow (21 Sept23).

Sunshine Metals which has gold and base metals projects from the Palmer River in Far North Queensland to Gladstone in the south, and Ravenswood south west of Townsville west to Mount Isa.

Cannindah Resources owns leases including the Mt Cannindah Copper, Gold and Molybdenum Project south the Gladstone and the Piccadilly project north of Charters Towers. 

It was a sign of the times said Fat Prophets resources analyst David Lennox. 

“Across the broader market, we have seen an uplift in costs because of obviously the inflationary pressures that have flown through …,” he said. 

“But we do understand that there is higher costs inside the system, so the funds aren’t going quite as far as they used to in the past. But again, that’s part and parcel of being a junior explorer. 

“The reality with an explorer is to ensure that when they do get cash in, that the exploration that they spend that cash on is converted into value in the ground. If they continue to do that, then the explorer is going to be supported on an ongoing basis and really that’s the key to explorers. 

“If they take cash, they’ve got to be able to convert it into value in the ground. By that I mean that the prospect or the deposit that they’ve found has got to have the potential to be grown as they get fresh cash in and explore it further and finally, ultimately, some years down the track go to commercialization.” 

Related: Austral extends voluntary ASX suspension

It seems to be a bit more complicated for Austral Resources which is off the bourse until the end of next week. 

The Mount Isa copper producer advised that its securities were expected to remain in voluntary suspension until Friday 29 September 2023 to enable the company to complete the previously announced financing.