Explorer Quarterly Cash Update: June 2024 quarter
Explorer Quarterly Cash Update: June 2024 quarter
Each quarter since 2014, BDO’s Natural Resources team compile a report that delivers insights on the cash position of ASX-listed exploration companies.
Key findings
Our latest edition signals a notable improvement in sector activity following a downturn in the preceding March 2024 quarter. Explorers raised $2.95 billion in funding, reflecting an 82 per cent increase compared to the previous quarter. This steep rise was largely driven by debt and equity raises of over $10 million. An increase in companies reporting a net financing inflow was also observed, suggesting that capital availability in the sector extends beyond large developers and producers.
Exploration expenditure was up by 10 per cent from the previous quarter, indicative of a modest rebound and a positive outlook among explorers after a period of cash preservation amidst prevailing economic uncertainty.
Gold reclaims the crown
Gold has overtaken uranium as the leading commodity for the first time since our June 2023 quarter report, securing a record high $1.14 billion in funds. This underscores the story of gold as a safe-haven asset during macroeconomic challenges and inflationary pressures.
Uranium remains a strong contender, ranking second in our Fund Finder analysis as global interest in the clean energy source continues its momentum.
For the second consecutive quarter there was no presence of lithium companies in the top ten Fund Finders. The decline in funds raised by lithium players highlights the current market sentiment, despite lithium’s crucial role in the clean energy transition.