Global metals exploration budgets jump 35%
(Kitco News) - Across the board, the bull market in base metals has helped boost investment since the COVID-19 pandemic took hold of the markets. S&P Global Market Intelligence recently conducted a report looking at the growth of investment in the sector and found that miners and financiers continue to see good value as investments are still increasing.
The report noted, the sector enjoyed a 35 percent rise in global nonferrous exploration budget year-on-year, jumping from $8.3 billion ($11.2 billion) in 2020 to $11.2 billion ($15.1 billion) in 2021.
Australia is a massive mining nation and efforts in early-stage metals exploration contributed to grassroots’ share of budget allocations rising from 24 to 26 percent year-on-year. having said that, the grassroots’ share of the allocation was at its second-lowest number on record, with 2020 the only year it fell lower.
S&P Global Market Intelligence’s Metals and Mining research team principal analyst Kevin Murphy said “A faster-than-expected recovery in market conditions and easing of lockdowns allowed explorers to reactivate programs by mid-2020, which caused some programs to carry over into 2021,”
He added, “Along with higher metals prices and increased financing activities, this has led to a strong budget recovery in 2021.”
Lastly, he noted “As we move into the last quarter this year, metal prices and financings remain robust, and the risk of further pandemic-related shutdowns has declined. As a result, we expect the aggregate exploration budget to increase between 5 percent and 15 percent year-over-year for 2022,”
Backing this up, the Australian Bureau of Statistics (ABS) presented updated exploration expenditures for 2021, indicating improved exploration spends in metals, gold, and copper.
The Bureau said Australia’s gold exploration grew by 41 percent year-on-year to $430 million over 2021’s June quarter, while copper exploration increased 44 percent year-on-year to $120 million over the same period.
By Rajan DhallFor Kitco News
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