via Financial Post - Junior Mining Sector Being Decimated

Kirk McKinnon has some very strong words for the broker dealer community which has used the junior mining sector as their favourite bucket shop. A little more sophisticated with HFT and equity swaps, but a swindle nonetheless.

Mining outfits that have become market darlings in the meanwhile may fit what the broker communtiy may like, but they will wind up being the same type of swindle as mines have in the past.

But there are more predations not mentioned, such as hypothecation of assets, voting rights going to equity swap holders, rather than shareholders, and rules that basically abolished sound established trading parameters to allow the full predatory nature of the market be unleashed, and massive credit be applied to risk assets.

It would be impossible to reversre course now. But I see here a massively convincing argument for dividend payouts, after operations and developmental capex are taken care of.

Otherwise miners are playing a game of Russian Roulette along with the broker community.

Financial Post