Global Exploration TrendspAn Overview of Worldwide Spending
David CoxVice President
Metals Economics GroupMetals Economics Group
MINEX Forum 2011October 5, 2011
© Metals Economics Group, 2011
Corporate Exploration Strategies‐Methodology
CES is the acknowledged source for worldwide exploration
budgets and strategies
• 22nd edition of CES in 2011
• More than 3 500 companies directly contacted and• More than 3,500 companies directly contacted and
interviewed
• About 2 400 active explorers are covered• About 2,400 active explorers are covered
• Companies spending more than US$100,000/year
P i d b t l di d i PGM• Precious and base metals, diamonds, uranium, PGMs,
some industrial minerals
A l i b t 95% f l b l f l ti
© Metals Economics Group, 2011
• Analysis covers about 95% of global nonferrous exploration
Exploration Spend vs Metals Prices, 1993‐2010
© Metals Economics Group, 2011Source: Corporate Exploration Strategies
What Factors Drive Exploration Spending?
• Metals prices
• Available risk capital
• Reserves replacement efforts• Reserves replacement efforts
• Discoveries
• Changing exploration costs
• Mining law and investment incentivesMining law and investment incentives
• Availability of geological survey information
© Metals Economics Group, 2011
Exploration by Target (% of annual total)
© Metals Economics Group, 2011Source: Corporate Exploration Strategies
Worldwide and Russian Nonferrous Exploration Spending by Target, 2010
Worldwide Russia
© Metals Economics Group, 2011Source: Corporate Exploration Strategies
Exploration by Stage of Development (% of annual total)
© Metals Economics Group, 2011Source: Corporate Exploration Strategies
Worldwide and Russian Nonferrous Exploration Spending by Stage of Development, 2010
Worldwide Russia
© Metals Economics Group, 2011Source: Corporate Exploration Strategies
Exploration by Region, 2001‐2010 (% of annual total)
© Metals Economics Group, 2011Source: Corporate Exploration Strategies
Top 10 Destinations in 2009 and 2010
2009 2010
Russia5%
© Metals Economics Group, 2011Source: Corporate Exploration Strategies
Exploration by Company Type (% of annual total)
© Metals Economics Group, 2011Source: Corporate Exploration Strategies
Cumulative Explo by Company Type, 1998‐2010 (US$ mil)
© Metals Economics Group, 2011Source: Corporate Exploration Strategies
Exploration by Headquarters, 2001‐2010 (%)
© Metals Economics Group, 2011Source: Corporate Exploration Strategies
Significant Junior and Intermediate Financings
© Metals Economics Group, 2011Source: MEG Industry Monitor
Total Equity Raised by Destination (Gold) 2008 – 1H 2011
© Metals Economics Group, 2011Source: MEG Industry Monitor
Equity Raised for Exploration Monthly ‐ Gold
© Metals Economics Group, 2011Source: Exploration Activity Service
Equity Raised for Exploration (Gold) 2008 – 1H 2011
© Metals Economics Group, 2011Source: MEG Industry Monitor
Significant Gold Drill Results Announced, 2008 – Aug 2011
© Metals Economics Group, 2011Source: MEG Industry Monitor
Total Equity for Development (Gold) 2008 – 1H 2011
© Metals Economics Group, 2011Source: MEG Industry Monitor
Exploration Spend vs Metals Prices, 1993‐2011
© Metals Economics Group, 2011Source: Corporate Exploration Strategies
Russia’s Share of Total Nonferrous Exploration, 2000‐2011
© Metals Economics Group, 2011Source: Corporate Exploration Strategies
Russia’s Share of FSU Nonferrous Exploration, 2000‐2011
© Metals Economics Group, 2011Source: Corporate Exploration Strategies
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© Metals Economics Group, 2011
