Nedbank Capital co-head of resource financing Mark Tyler said 2012 was a poor year for mining finance and 2013 was likely to be similar. He said the traditional mining markets of the London Stock Exchange, the Toronto Stock Exchange and the Australian Securities Exchange would remain the best places to raise funds.

“If the story was good, it was possible to go to the market and raise a big chunk of money,” Tyler said, adding that this was likely to be the case again this year.

Tyler said companies wanting to raise $5 million for a drilling program would find it tough, unless the prospect looked particularly promising.

“I think the market is waiting for a complete story,” he said.

Instead, Tyler believes miners will have to seek alternative forms of financing.

He did not expect private equity to fill the void, but like last year, streaming and royalty deals were expected to grow in popularity.

Tyler said convertible notes had been on the rise, though it was a “sign of desperation” that companies were converting at low premiums.

“Converting at low premiums is the worst of both worlds,” he said.

“One needs to use [convertibles] wisely.”

Tyler urged companies to pay good money for chief financial officers and advisors.

“A good CFO is worth his or her weight in platinum.”