Global Mining Exploration Budget Trends - 2017
Mining exploration budgets rebound in 2017,
led by gold
By Mark Ferguson | 29 September 2017
Newly released 2017 global exploration budget data from S&P Global Market Intelligence's Corporate Exploration Strategies series confirms the view held by many analysts and pundits that the mining exploration sector is firmly, but cautiously, emerging from a protracted downturn. Preliminary analysis shows that the annual global nonferrous exploration budget has increased for the first time since 2012, rising by more than 14% year over year to US$7.95 billion.
Improving market conditions and stronger metals prices since mid-2016 have encouraged many investors to reconsider the mining sector as an investment option, leading to a modest rebound in financing levels over the past 18 months — especially among the junior explorers. It is well known that the juniors have borne the brunt of the downturn since 2012; however, the budget data indicates that, among all company types, the surviving juniors are making a strong comeback in 2017, increasing their aggregate exploration budget by 23% year over year.
Despite these improving conditions, the persistence of the downturn has continued to force some mining companies to halt spending or to leave the sector altogether. The 1,535 mining companies actively exploring in 2017 is a modest 3% decline from the 1,580 mining companies active in 2016; however, it is more than 1,000 mining companies less than in 2012, representing a remarkable 40% drop in the number of active explorers over the past five years.
