27 Jan Mining juniors to flourish on the AIM market in 2017
Junior mining companies, along with smaller oil and gas firms, are set to enjoy a positive year on the Alternative Investment Market (AIM), according to research by junior broker FinnCap.
With commodity prices projected to steadily rise over 2017, a higher initial public offering (IPO) is expected for industrial firms.
FinnCap, the AIM’s largest listed junior broker, said industrials will reap the benefits from the strong recovery of the mid and large-cap miners over the last year.
BHP Billiton (ASX:BHP) recently announced record output in its iron ore operations, while its share price rose 84% to the end of 2016. Rio Tinto’s (ASX:RIO) share price also rose 64% over the year.
“We expect 2017 will see some of the profits rotated into the more attractive growth investment opportunities coming through, this includes some genuine mineral explorers,” said the FinnCap report.