Gold dominates 65% of Australia’s total mining deals
A new report has found gold projects accounted for $12.6b of the $18.7b in mining deals completed in Australia in FY25.
PwC Australia’s Aussie Mine Report 2025 shows an almost entirely gold driven total market capitalisation increase of 15% to $128.6b — with the gold sector market capitalisation surging 94% to $64.8b as prices breached $5341/oz.
In contrast, the critical minerals market capitalisation declined 20% to $37.1b and the operating cash flows for critical minerals also fell 71% to $.9b.
The report analysed 50 of Australia’s mid-tier miners and identified a critical juncture — despite evolving policy settings, including the $13b US-Australia agreement, and price support mechanisms as well as new tax credits, only seven new investable critical minerals projects were added in the past year.
The report also highlighted the shifting roles of international strategic partners, including the US, Japan and Korea who are actively pursuing critical mineral opportunities, driven by shifting security and defence landscapes.
PwC Australia energy, utilities and resources leader Kerryl Bradshaw says gold thrived as a safe-haven asset amid global uncertainty, capturing the majority of investment flows.
“The question now is whether the policy architecture and international partnerships in place can redirect capital toward Australia’s strategic minerals opportunity,” she said.
“Demand is urgent and diverse. Defence priorities now rival the energy transition as key drivers and international partners are at the table with capital ready to deploy.
“The gap we have seen between promise and production is an invitation, not a warning sign. This is genuinely Australia’s moment, if we can match execution velocity to the opportunity in front of us.”
Out of the 900 critical mineral projects identified, 124 “investment-ready” critical mineral projects are seen as having a defined resource yet not reaching a final investment decision (FID).
Nearly one-third of the projects are focused on copper as well as minerals associated with batteries, renewable energy and defence technologies.
Only one quarter of those projects have proven and probable reserves and few of these projects have a publicly disclosed net present value (NPV) of more than $1b — many cluster at a NPV of $600m or less and few have a NPV to capex ratio greater than two.
Many projects have struggled to attract long term, patient capital to fund definitive feasibility studies and project development in the prevailing pricing environment. The recent adoption of physical stockpiles and price support mechanisms by the Federal Government may mitigate price and volume risk more effectively in time.
The critical minerals projects are also still awaiting offtake agreements or finance approval — creating a valley between discovery and production that recent policy interventions are designed to bridge.
However, PwC reports that this is ideal for strategic partnerships and new funding mechanisms.
“The US is targeting a domestic rare earth supply chain by 2027,” Ms Bradshaw said.
“Korea and Japan are seeking secure supplies. The demand is real, and the capital exists, the window to convert Australia’s resource advantage into production leadership is open, but it won’t stay open indefinitely.”