Investors return to mining stocks

Punters are piling into the speculative end of the mining sector...and being very well rewarded for brave moves.

Summary: There have been a number of oversubscribed share issues coming from the small end of Australia’s mining sector in the past few weeks, with many of the funds used for future exploration projects. Potash, gold and lithium have been popular choices, and while not all capital raisings have been successful, many have seen capital gains almost immediately.

Key take out: The renewed interest in these miners suggests that while the drought may not have broken, the speculative investor believes they can find value in our smaller mining operations.

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