Quality over quantity is key to raising capital in today’s tight market according to a group of top investors speaking at the International Mining and Resources Conference this morning.

The group comprised Julian Treger (CEO and Executive Director, Anglo Pacific Group), Peter Rozenauers (Portfolio Manager, Orion Resources Group), Jason Chang (Managing Director and CEP, EMR Capital) and Campbell Olsen (CEO, Arete Capital Partners) said that the mining industry has seen a revolution on how capital makes its way into the enter the market over the last decade.

“We are seeing the emergence of private capital from the US pension money, and endowment money and this capital is looking where to go to next and mining is the big focus,” Mr Chang said.

“Even in the past five years we are seeing more capital from those areas. Our view is that good assets typically get funded.”

Campbell Olsen said that while there is money still out there, the focus is on the quality end.

“There are a lot of companies that have low-quality assets that don’t stack up that are still being promoted. And the investment industry is waking up to that,” Mr Olsen said.

“We concentrate on the high-end, with high-purity.”

The panel at the Rising Capital session on the opening day of Australia’s largest mining conference also explored ways that mid-tiers can attract much-needed funding. 

According to Mr Treger, not all commodities can be funded, with coal being out of favour.

“You have to choose your spots. If you are going to try to raise money for gold, it is easier in the public market. In private equity, we look at the pricing outlook. You need to think about your commodity and where it is in the pricing cycle,” Mr Treger said.

While some commodities may be unattractive at the moment, investors are rushing to open their wallets to spend on battery minerals; however, the demand side of the equation is unknown, according to Mr Rozenauers. 

Seconding that sentiment Mr Chang said that copper is at the top of every investor’s wish list.

“Everyone is chasing good cooper, and we are seeing some exciting opportunities out there.

“There is a lot of new market money going into new frontiers including for copper, gold, potash and hard coking coal however there are not too many large discoveries,” said Mr Chang.