Explorer Quarterly Cash Update: December 2023 quarter

Each quarter, BDO’s Natural Resources team compile a report offering insights into the financial health and cash position of ASX-listed exploration companies.

Key findings

Our latest edition reveals record-high exploration spending in the December 2023 quarter, totalling $1.01 billion – reaching levels among the highest recorded since 2013 and topping the 2023 calendar year.

This increase in exploration expenditure is particularly encouraging as it comes not only from the larger end of the market but also from companies in the $100k to $300k range, reflecting growing confidence in the sector.

Industry outlook for Natural Resources

Building on the key findings from our September 2023 quarter report, lithium maintains its top position as the leading commodity in our Fund Finders despite recent declines in battery metal prices due to global demand and supply challenges. This highlights the resilience of Australian lithium explorers in attracting funds and reflects the increasing support for the ‘clean energy’ transition.

While our data indicates a shift towards renewable energy, investment continues to pour into oil and gas exploration, with three of the top five spends related to this sector. This underscores the reliance on traditional energy sources in the ongoing pursuit of net zero goals.

Overall, our analysis illustrates that the Australian exploration sector is in good health, giving us the best chance of meeting the future mineral demand required for the energy transition.

Download our report