Conference insights: Growth and sustainability in the natural resources & energy sector

Adam Myers, BDO Deal Advisory Partner, recently attended several natural resources & energy conferences including the 121 Mining Investment Conference and the RIU Explorers Conference.

The 121 Mining Investment Conference, held in Cape Town, is a premier forum for meetings between mining companies and investors. This event, which is a key gathering for mining professionals, focuses on opportunities in the mining sector, emphasising economic growth and sustainability. The conference brought together over 650 investors and more than 110 junior mining companies involved in production, development, and exploration. It featured speakers from leading mining firms and institutional funds, with a strong emphasis on investment capital and market insights

Closer to home, the RIU Explorers Conference is the premier retail investment conference covering grassroots exploration through to exploration alumni who are now established producers. This conference also saw significant participation and discussions, particularly around the volatile and tight markets influenced by geopolitical factors. The US stance on various issues continued to change, creating a buzz at the conference. Gold remained the commodity of choice, with many conversations speculating on the next gold takeover.

Investor interest

Volatile markets were a significant topic at both conferences. The influence of geopolitical factors was particularly evident, with the USA and Canada announcing and pausing tariffs in quick succession. At RIU, the ever-changing stance of the US on various issues created an atmosphere of uncertainty and anticipation. This instability was reflected in numerous discussions, with gold emerging as a central theme. Speculation about potential takeovers in the gold sector, emphasises its continued importance.

Investor interest was palpable at the 121 conference, with the majority of companies swamped with back-to-back meetings. Feedback indicated that many of these meetings were meaningful, suggesting a strong alignment between investor expectations and company offerings. Commodities that grabbed the most attention included gold, copper, critical minerals, and uranium. These materials are crucial for the energy transition and the push for decarbonisation, driving robust demand.

Canadian companies were particularly active, both seeking funding and pursuing new projects. This highlighted a disconnect between the deep industry experience within these companies and the capital markets. Despite their expertise, many Canadian firms face challenges in securing the necessary investment to advance their projects. The conference served as a vital platform for bridging this gap, facilitating connections that could lead to significant advancements in the sector.

Energy demand and transition

Energy demand unveiled itself as a significant topic, as mentioned in various presentations and discussions at both conferences. The consensus is clear: the demand for power is set to rise significantly. Nuclear energy is expected to play a crucial role in keeping pace with the growing energy demand and is already being considered by many nations. In Cape town, it was clear that Africa’s experience with long-term power issues had led to this discussion. While energy transition is a central focus, it is not the sole solution. Achieving Net Zero remains a target, but there are evident challenges that need to be addressed.

The move towards clean technology, including the expansion of data centres powered by clean energy, is gaining momentum. Ensuring equitable access to power is also a key consideration. Ambitions for downstream processes will require substantial energy, further driving demand. Additionally, the transition to clean energy will necessitate a significant supply of critical minerals. Forecasts suggest that as solar energy adoption increases, there will be a corresponding shift in demand, with nuclear energy playing a more prominent role. This multifaceted approach underscores the complexity and urgency of addressing energy demand and transition.

In this respect, the spotlight was on Uranium at RIU, particularly the Western Australian and Federal Governments' stance on uranium mining and nuclear energy. Jonathan Fisher from Cauldron Energy’s presentation provided plenty of food for thought to kick off a sensible debate around these areas. The discussions echoed the growing interest in incorporating nuclear energy into the broader energy strategy.

ESG and tangible actions

Overall, the longer-term themes from both conferences reflect the findings of BDO’s Annual Mining report released in January 2025. The ongoing discussions, especially with President Trump's comments on whether “ESG is dead,” highlighted that ESG is very much alive. Companies are actively discussing how to reduce the impacts of their operations, with the expectation that actions are being taken rather than just conceptual discussions. In Cape Town, a panel session hosted by African-focused environmental consulting firm Digby Wells emphasised that tangible results and actions are the new normal, not just broad statements. Companies excelling in this area are focusing on individual elements on the ground, with reporting structures ensuring relevant collaboration.

Reporting requirements are not the primary driver; companies that are performing well are breaking down tasks into individual parts. The focus is on doing the best we can now rather than waiting for the perfect solution. This approach underscores the importance of immediate, actionable steps in addressing ESG concerns and highlights the shift towards practical implementation over theoretical discussions.

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