State of the Market: Mining Q4-2023

Geopolitical instability, military conflicts on multiple fronts, and disruptions to a pivotal shipping route were large macroeconomic drivers during a tumultuous quarter. As such, metals prices continued to be volatile by year end 2023. The economic malaise that started in the second half of 2022 persisted for most commodities. Although inflation in most economies moved closer to normal levels, demand continued to have a hangover from inflation and a stronger trade-weighted index of the US dollar put further pressure on prices. As 2023 concluded, the potential for interest rate cuts saw a general softening of the US dollar. This had a knock-on effect for many metal prices, although the modest recoveries in the December 2023 quarter could not undo the value destruction during the year. One of the few exceptions to this was gold, which ended trading above $2,000 per troy ounce, well above its 2023 starting point of $1,800 per ounce.  

Exploration activity continued to slow down in the quarter, decreasing to pandemic lows. Funds raised by junior and intermediate mining companies reduced by 18% in December 2023 from lower gold and specialty commodities financings, despite higher funds raised for base/other metals. Drilling metrics declined, as has been the case of every December in the past years, positive project milestones and new initial resource announcements stayed the same.

Join our analysts as we provide a recap of the December 2023 quarter and obtain our views for this year and beyond.

• Commodity price trends, drivers, and estimates
• Mergers and acquisitions, mining financing
• Exploration and development metrics