SNL MEG’s Pipeline Activity Index (PAI) has been struggling through 2013, slumping to the lowest level since the Industry Monitor began compiling the data in 2008. Gold is now at its lowest price since 2010, exacerbating the effects of the difficult financing conditions that have persisted since last year. There have been reductions in grassroots spending which has resulted in lower numbers of drill results and initial resource estimates, while slashing of budgets and weak metals prices are leading to cuts and delays in capital improvement plans at mines and more shelved development projects.The industry’s aggregate market cap declined in May before falling even further in June to finishat $1.24 trillion which is the lowest since June 2009 and has now declined 30% since January. The number of drill results announced in May-June is slightly up of the lackluster March-April period, but is down 30% from May-June 2012. The numbers of reported new finds noticeably declined in the first half of 2013, as the active companies continue to curtail grassroots and generative work in favor of expanding known ore bodies.The September quarter is typically the peak reporting season for drill results, but for 2013 this seems to be unlikely due to weakening metal prices, which was preceded by persistent financing difficulties suggests there are going to be further declines before showing signs of improvement.The 49 significant financings, worth $2 million minimum, completed in May-June is the lowest two-month total since at least the start of 2008, when the Industry Monitor began tracking this data. Junior and intermediate companies raised a total of $585 million in the period, 70% less than March-April and 66% less than the corresponding period in 2012. Weakened metals prices coupled with the financing volatility that has persisted since mid-2012 have left many junior explorers fighting for survival. Some have successfully negotiated JVs or found strategic investors that will hopefully see them through, while others are looking to partner or merge with peers. However, the number of companies able to secure funding based solely on the strength of their assets continues to dwindle.