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Summary
Preliminary results for global exploration budget data from S&P Global Market Intelligence's Corporate Exploration Strategies, or CES, series shows that exploration budgets decreased in 2023 due languishing financing activity for the junior sector after metal prices pulled back from the highs reached in 2021 & 2022. We estimate that the global nonferrous exploration budget decreased 3% in 2023 to $12.6 billion from $13.1 billion in 2022.
Many of our expectations for budgets this year played out. The junior sector, which is reliant on the marketplace to fund their activities, decreased while the major companies saw a modest increase. Exploration for critical minerals saw significant gains whereas gold budgets fell off. Geographically, both Australia and Canada had the largest declines as their large junior explorer populations encountered issues funding their programs; in both countries, gold exploration was most impacted. In contrast, exploration directed to Latin America increased this year on the back of stronger copper and lithium allocations. Despite the overall decrease in budgets, the number of active explorers increased modestly to 2,234 in 2023 from 2,189 in 2022.
The current weakness in both metal prices and financing levels is currently expected to persist through 2023 and into at least the first half of 2024. This will restrict any significant increases to budgets for next year. Continuing interest in the mining supply chain however, should help insulate the sector from any significant decreases in exploration levels.
Join our analysts as we review 2023 and look ahead to 2024:
- Exploration by commodity, geography and project stage of development
- Discovery trends
- Recent drilling and financing activity
- 2024 exploration outlook
Speakers
S&P Global Energy
Kevin Murphy
S&P Global Energy
Director of Metals & Mining Research
Kevin Murphy is a Research Director for Metals and Mining Research with S&P Global Market Intelligence and is based out of Halifax, Nova Scotia. He manages a group of analysts with the Metals & Mining Research group and writes analysis on various aspects of the industry including exploration, discoveries and production pipelines.
He began his career in metals and mining in 2007 as an analyst for Metals Economics Group which, through a series of acquisitions, became the core of S&P Global Market Intelligence’s Metals & Mining division. He is passionate about the mining industry and its critical role in the global economy.
S&P Global Energy
Paul Manalo
S&P Global Energy
Senior Principal Analyst, Mining Studies & Mine Economics
Paul has been a member of Metals and Mining research team of S&P Global Energy for more than 8 years. His team is involved in the annual publication of Corporate Exploration Strategies that analyzes global trends in exploration. He also works on the group's monthly Industry Monitor and focuses on keeping track of financing and capital raising activities of mining companies.Prior to joining S&P, Paul also managed different research groups that looked at various industries such as retail and logistics. He majored in Philosophy with a minor degree in Political Science from the University of the Philippines.
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