By Nick Wright | 10 April 2017
S&P Global Market Intelligence’s Monthly Industry Monitor reviews activity in the mining industry's exploration and development sector. The highlights from the latest edition are below.
While it may be too early to call a rebound in the junior sector, there are signs that the majors are beginning to invest in projects again. Goldcorp is teaming up with Barrick Gold to develop gold mines in northern Chile, notably the Cerro Casale gold-copper project. Barrick also recently announced a partnership with state-backed Chinese miner Shandong Gold, which will pay almost US$1 billion for a 50% stake in Barrick’s Veladero operation in Argentina.
AngloGold Ashanti has also been looking for joint venture partners to help move along its development projects in Colombia. AngloGold has been exploring 28-Moz La Colosa gold project for more than a decade.
The aggregate market cap of the industry’s top 100 companies slipped 2% in March, to US$1.31 trillion, which is still a level not seen since May 2015.
Market for Mining
S&P Global’s indexed metals price eased slightly in March, to 112 from 113 in February, just off from its highest value since September 2014. The indexed price rose for six of the eight constituents of the index.
Pipeline Activity Index
S&P Global’s Pipeline Activity Index (PAI) rebounded in March, to 79 from 72 in February, as increases in significant financings and project milestones were offset by lower reported drill results.
Exploration
After hitting a four-year high in January, global drilling activity eased off for a second consecutive month in March, with the total number of distinct projects reporting drilling dropping to 196 from 205 in February.
Initial Resources
After rebounding slightly in February, the number of initial resource announcements was unchanged in March at five; however, their US$754 million total value was down 71% from US$2.61 billion recorded in February.
Exploration Finance
In what may be a cyclical pattern for the beginning of the year, the number of financings by junior and intermediate companies rose for at least a third consecutive March, to 217 from 169 in February. The US$706 million raised was up 10% from US$641 million in February.
Projects Reporting Drill Assays (March)
Pipeline Activity Index (March)
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