What happened
According to BDO's latest Explorer Quarterly Cash Update, Australian resource exploration expenditure reached $1.05 billion in the June quarter, its highest level since December 2023 and up 26 per cent above the two-year average. Net investing cash outflows jumped 61 per cent to $1.61 billion, while total cash holdings across the sector remained at a record $13.04 billion.
Why it matters here
Exploration spending indicates where resource companies anticipate long-term demand and project viability. With funds directed heavily into gold, copper, and industrial minerals driven by supply chain security and energy transition themes, well-capitalised explorers offer potential project pipeline growth for resource-focused investors.
What to watch
Quarterly cash flow reports and exploration updates from mid-tier and junior miners to track capital deployment rates into active drilling and project development.
Source
australianresourcesandinvestment.com.au