Publication:

Explorer Quarterly Cash Update: September 2021

08 December 2021

Sherif Andrawes, Global Head of Natural Resources
Partner, Corporate Finance
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BDO’s latest research into the financial health of Australian-listed explorers for the September quarter of 2021 shows the exploration spending of ASX listed explorers hit $877 million in the September 2021 quarter, representing a 32% increase from what was already a seven-year high in the June 2021 quarter.

Amidst the higher level of spending over the September quarter, the number of companies lodging Appendix 5Bs broke the 700 mark, reaching a total of 704 companies with IPOs continuing to be the main driver. This number is 62 more than the September quarter in 2020.

The exploration sector is showing no signs of slowing with spending peaking and battery mineral companies driving an uptick in investment and financing. The report also highlights how governments, corporations and investors are placing greater emphasis on the energy transition away from emitting fossil fuels. Exploration companies constantly need to consider the relevance of ESG to their ongoing operations.

BDO expects that the growth in exploration activity will continue in light of continual strong cash balances and the higher number of listed exploration companies, but notes that this growth may continue to be constrained by the availability of resources, travel restrictions and a shortage of skilled labour.

Read the full report