Since its inception in 2013, BDO’s Explorer Quarterly Cash Update has become a trusted barometer of Australia’s exploration sector's financial health. Over the past decade, BDO’s natural resources & energy team has tracked the evolving dynamics of capital flows, investor sentiment, and exploration activity across the ASX-listed junior mining landscape.
In the video below, Adam Myers, Partner, Deal Advisory, provides an overview of the December 2025 quarter.
Market engagement continues to point to strong sentiment, supporting expectations of a robust M&A and capital-raising environment. While volatility and geopolitical uncertainty remain front of mind, a consistent theme is the growing importance of collaboration across the industry to address increasingly complex critical-metals supply chains.
Our latest report for the December 2025 quarter reveals a sector in transition, with several indicators pointing to renewed momentum and a more resilient outlook:
These findings point to a clear shift in sector dynamics. Capital deployment, exploration activity and investor appetite strengthened materially through the December 2025 quarter, underpinned by record funding outcomes and elevated cash balances. At the end of the quarter, explorers were well-funded and activity was broadening across gold and energy transition commodities, supporting a more resilient footing into 2026.
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The December 2025 quarter built on the momentum established in September, with financing inflows reaching a record $5.63 billion, up 61 per cent quarter‑on‑quarter, supported by a larger and more diverse Fund Finder cohort. While gold remained a key contributor across the year, energy transition commodities featured prominently, with lithium overtaking gold as the largest source of financing inflows during the quarter. Capital-raising activity continued to shift towards larger transactions, reflecting growing investor confidence in better‑funded explorers with clearer development pathways, and underpinning a record sector cash balance heading into 2026.
Figure 1: ASX explorers' financing cash flows ($M)
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Source: ASX Appendix 5B's of the companies and BDO analysis
Exploration expenditure strengthened further, increasing to $915.65 million in the quarter. Average spending per explorer rose as activity shifted into higher expenditure brackets, reflecting improved funding conditions and greater confidence across the sector. Gold explorers remained a key driver of activity amid record prices, while energy transition commodities also featured prominently as capital availability supported broader exploration programs. December quarter funding conditions and stronger cash balances provide support for continued exploration activity, contributing to a more resilient and diversified sector outlook.
Figure 2: ASX explorers' total exploration expenditure ($M)
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Source: ASX Appendix 5B's of the companies and BDO analysis
Average cash balances increased sharply in the December 2025 quarter, rising 48 per cent to $16.09 million, reflecting another exceptionally strong funding period for the sector. A greater proportion of explorers reported healthy cash positions, with record aggregate cash balances of $12.04 billion, leaving companies well positioned to fund exploration and development programs without near‑term capital pressure. This step‑change in liquidity strengthens balance sheets across the sector and enhances explorers’ capacity to manage volatility while advancing growth opportunities into 2026.
Figure 3: ASX explorers' cash balance
Source: ASX Appendix 5B's of the companies and BDO analysis
Each quarter, BDO reports on exploration companies that have raised $10 million or more in funding, a group we refer to as ‘Fund Finders’. The top ten largest fundraisers for the December 2025 quarter are listed below:
Lithium
$957.29 million raised from proceeds from the issue of equity securities
Rare Earths
$500.72 million raised from proceeds from the issue of equity securities
Gold
$218 million raised from proceeds from the issue of equity securities, and
$2.73 million raised from the exercise of options
Copper-Gold
$149.11 million raised from proceeds from the issue of equity securities
Rare Earths
$120 million raised from proceeds from the issue of equity securities
Gold
$80.31 million raised from proceeds from the issue of equity securities, and
$27.50 million raised from the exercise of options
Copper-Gold
$62.83 million raised from proceeds from the issue of equity securities, and
$41.85 million raised from proceeds from borrowings
Silver, Zinc, Copper-Gold
$99.19 million raised from proceeds from the issue of equity securities
Lead, Silver, Zinc
$90.42 million million raised from proceeds from the issue of equity securities
Lithium
$53.58 million raised from proceeds from the issue of equity securities,
$3.78 million raised from proceeds from borrowings, and
$36.77 million raised from the exercise of options
Foreign-currency-denominated inflows have been converted using the prevailing exchange rate as at 31 December 2025.
Since 2013, BDO has proudly published our Quarterly Explorer Report, providing insights into the performance and trends shaping Australia’s exploration sector. If you’d like to discuss this quarter’s findings or find out how BDO can support your needs in the natural resources sector, contact us.
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