Categories: Base Metals / Energy / General Market Commentary / Precious Metals
Topics: General Base Metals / General Energy / General Market Commentary / General Precious Metals

Mining exploration spending drops to 11-year low

Mining exploration spending drops to 11-year low

A new report by SNL Metals and Mining on Corporate Exploration Strategies in 2016 shows an industry still caught in a deep downturn after four years of sharp declines.

According to SNL, part of S&P Global Market Intelligence, 2016 exploration budgets at the 1,580 companies covered by the study totalled $6.9 billion, the lowest in 11 years.

Source: S&P Global Market Intelligence

Other measures show the extent of the damage to the sector: The average 2016 exploration budget was $4.4 million, the lowest since 2009, and the median budget was $800,000, the smallest in more than a decade.

Spending was dominated by the industry's largest companies with just the top 10 companies were responsible for over $1 of every $5 spent on exploration – mainly for copper and gold – worldwide last year.

SNL notes that "conventional wisdom holds that the major companies leave grassroots exploration to the juniors," but today early-stage exploration is being driven by the majors. The 20 biggest spenders alone contributed 34% of all greenfields allocations in 2016.

To continue reading please click link http://www.mining.com/greenfields-share-exploration-spending-drops-record-low/