S&P Global Market Intelligence reports a 21% decline in worldwide nonferrous metals exploration budgets in 2016, but activity increased as the year progressed.
HALIFAX, Nova Scotia, March 3, 2017 /PRNewswire/ -- S&P Global Market Intelligence, a leading provider of multi-asset class research data and insights, revealed findings from the latest World Exploration Trends (WET) report, which showed a fourth consecutive year of falling exploration.
The WET report is based on S&P Global Market Intelligence's 27th Corporate Exploration Strategies (CES) study, which calculated that the mining industry's total budget for nonferrous metals exploration was just US$7.2 billion in 2016, compared with the record US$21.5 billion budgeted in 2012. Despite the steep plunge in annual exploration budgets, the past three quarters have brought signs of optimism for a long-struggling industry. Since last March, exploration companies have increasingly been able to raise funds and restart focused programs. The steep plunge in exploration budgets can be attributed to investor wariness of exploration and a significant reduction in spending by producing companies as they sought to improve profit margins.
The exploration estimate for 2016 is based on information collected from more than 2,000 mining and exploration companies worldwide, of which almost 1,600 had exploration budgets of at least US$100,000. These reported budgets amounted to US$6.89 billion, with a further US$310 million estimated to have been budgeted by companies for which data was unavailable.
Additional findings from the report:
The annual World Exploration Trends report is available for download here. Attendees of the Prospectors & Developers Association of Canada (PDAC) convention on March 5-8 are encouraged to visit the S&P Global Market Intelligence booth on the main trade show floor, for a free copy of the report and additional information.
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SOURCE S&P Global Market Intelligence