Despite a tough start to the year from small-cap mining and exploration companies in Australia, Head of Research at Patersons Securities, Mr Rob Brierley believes explorers who show some success will be rewarded by investors.

“It is going to be tough initially but there is plenty of money on the side lines,” he said. “It’s all about luck, exploration and dollars being spent wisely and methodically in the ground.”

Speaking ahead of the RIU Explorers Conference in Fremantle next week, Mr Brierley asks investors to be patient and give explorers the money they need to get the job done.

“Exploration is not a quick game, it takes a lot of luck and a lot of science,” he said.

However a lack of funding from investors could see an increase in M&A activities amongst exploration companies.

“We have got some 580 resources companies on the stock market at the moment and about half of those have less than $1 million in the bank so I think there are some sensible mergers and acquisitions to be done,” Brierley said.