From the FT:
A downturn in the resources industry has prompted a growing number of struggling Australian miners to switch their focus to the booming medicinal marijuana market in an effort to stimulate investor interest.
At least three resources companies are aiming to raise money on the Australian Securities Exchange in the coming weeks, swapping mechanical diggers for hemp growhouses.
The moves follow the flotation of Phytotech Medical, a Perth-based company that raised A$4m (US$3.13m) in January to become Australia’s first listed marijuana stock.
“The resources sector generally, but in particular at the micro-cap end, is finding it difficult to find support from the capital markets,” said Peter Tasker, director of International Goldfields.
All three of these are gold juniors, green and gold now.
Meanwhile, from the West Australian, the WA Treasury is already hitting the medicinal:
WA Treasury officials are worried that public assistance to embattled mid-tier miners might not be repaid if the iron ore price keeps falling.
BC Iron and Atlas Iron are expected to owe the State $38 million before December 2017 under the royalty rebate scheme announced in December to keep small producers afloat.
Pass the doochie.
