What happened
BDO’s Explorer Quarterly Cash Update revealed Australian exploration spending rose to $1.05 billion in the June quarter, 26 per cent above the two-year average. Net investing cash outflows jumped 61 per cent to $1.61 billion as companies advanced project infrastructure, while sector cash balances held firm at a record $13.04 billion.
Why it matters here
Accelerating exploration expenditure demonstrates that resource companies are actively converting balance sheet strength into ground activity. For investors, increased field work accelerates project development milestones and resource expansion announcements, providing potential catalysts for small- and mid-cap resource stocks.
What to watch
BDO's upcoming September quarter cash update and junior explorer drilling updates across WA and Queensland.
Source
australianresourcesandinvestment.com.au