Raising capital is one of the biggest challenges in mining. In this episode, Gordon Lam, VP of Capital Markets at InterGroup Mining, explains how investors assess opportunities, what makes projects investable, common fundraising mistakes, and how companies can improve their chances of securing funding. From greenfield exploration to production-stage assets, this discussion provides valuable insights for mining executives, geologists, consultants, and investors.
Video transcription
Introduction
Today I'm speaking with Gordon Lam, VP of Capital Markets at InterGroup Mining. Gordon has spent decades helping mining companies raise capital and attract investors. In this conversation, we discuss how mining investors think, what makes projects investable, and why some companies succeed in fundraising while others struggle.
Gordon Lam’s Journey from Broker to Capital Markets Executive
Gordon began his career as an investment advisor after graduating in finance. He spent 17 years as a broker raising capital for mining companies before moving to the corporate side, where he now raises capital directly for mining companies and helps guide projects through different stages of development.
How Investors Think vs. How Founders Think
Investors and founders often view projects differently. Investors focus on risk, return, and portfolio fit, while founders naturally focus on the strengths of their own projects. Investor preferences also vary significantly depending on age, risk tolerance, and investment objectives.
Individual Investors vs. Funds
Retail investors are often willing to participate in early-stage exploration opportunities. Institutional investors typically prefer projects that have been substantially de-risked through resource estimates, economic studies, or advanced technical work.
Raising Capital for a Greenfield Project
For early-stage exploration projects, funding commonly comes from retail investors, brokers, high-net-worth individuals, and specialized exploration funds. Building relationships and leveraging existing investor networks remain critical.
MRE vs. PEA: When Economics Matter
A Mineral Resource Estimate demonstrates geological potential, while a Preliminary Economic Assessment helps investors understand possible project economics. The appropriate timing depends on project size, commodity, and development stage.
Raising Money Toward the PFS Stage
As projects advance toward Preliminary Feasibility Studies and Definitive Feasibility Studies, larger investors become increasingly interested due to improved confidence and reduced technical risk.
Do Investors Read Technical Reports?
Sophisticated investors carefully review technical reports and supporting studies. As project maturity increases, investors pay greater attention to economic assumptions, resource quality, metallurgy, and development plans.
Red Flags That Make Investors Walk Away
Investors evaluate management history, capital allocation, share structure, governance practices, and the company's ability to create shareholder value. Poor execution and weak corporate discipline can quickly eliminate investor interest.
Why Weak Projects Sometimes Raise Money
Investment decisions are often influenced by valuation. A weaker project may attract capital if it is priced attractively, while a stronger project may struggle if investors believe it is overvalued.
Exploration Potential vs. Mineral Resource
Potential remains one of the most important drivers of early-stage investment. Investors seek projects capable of becoming large, economically viable operations rather than small deposits with limited growth potential.
Do Technical Reports Really Matter?
Technical reports, Qualified Persons, jurisdiction, management quality, and project fundamentals all contribute to investment decisions. Reports are important, but they are only one part of a broader evaluation process.
Political Risk and Mining Investments
Investors weigh political stability, government policy, permitting risk, local relationships, and operational support when evaluating projects in developing jurisdictions.
Bad Data vs. Bad Economics
Poor geological data can quickly destroy confidence in a project. Successful investors and management teams know when to continue investing and when to cut losses and move on.
Why Independent QP Validation Builds Trust
Independent Qualified Persons provide credibility and confidence by verifying data, methodologies, and project assumptions. Third-party validation remains a critical trust factor for many investors.
How to Tell a Strong Project Story
Successful fundraising requires a clear, credible narrative supported by data. Companies should communicate realistic goals, demonstrate a path to value creation, and avoid overpromising.
Building Investor Relationships
Marketing, investor relations, conferences, roadshows, and personal networks all contribute to fundraising success. Long-term relationships often generate better results than advertising alone.
Raising Capital Without Existing Connections
For companies without established investor networks, building relationships through industry events, direct outreach, and strategic partnerships becomes essential.
Equity, Joint Ventures, and Royalties
Different financing structures become appropriate at different development stages. Equity is common throughout the project lifecycle, while joint ventures and royalty financing are often used for larger capital requirements.
Market Timing and Fundraising
Commodity prices, investor sentiment, and broader market conditions can significantly influence fundraising success and company valuations.
What Makes Investors Say Yes
Successful companies combine strong management, quality assets, sound technical work, disciplined capital allocation, and effective communication. Investors look for a complete package rather than a single standout feature.
What Investors Really Say After the Meeting
Follow-up conversations are critical. Investors often discuss concerns privately after meetings, and effective follow-up can address misunderstandings and improve the likelihood of investment.
Conclusion
Mining fundraising requires more than a good project. Success depends on management quality, technical credibility, investor communication, project economics, market timing, and trust. Understanding how investors think can dramatically improve a company's ability to secure capital and advance its projects.