Independent research conducted by Austex into the Cash Flow reports of 733 resource companies has shown that total exploration was a record A$974 million, up from A$845 million in the third quarter of last year, and A$563 million a year ago.

“Austex’s analysis of Appendix 5B Reports illustrates industry’s commitment to finding new mines to create jobs, royalties and benefits to the local community,” said Warren Pearce, CEO of the Association of Mining and Exploration Companies (AMEC).

“Total Australian mineral exploration expenditure continues to grow, demonstrating the strength of Australia’s mineral exploration industry, the record capital raising combined with the record exploration spend will lead to more discoveries.”

Total capital raisings increased to a record A$3170 million, a 37% increase from the A$2312 million raised in Q3 2021 and A$1823M in Q4 2020.

Austex Resource Opportunities founder Rob Murdoch said the significant growth in capital raisings is a promising indicator of the ongoing strength of the resources sector, investors’ confidence in future discoveries being made, and is in response to a rising string of demand for resources of all types.

The 733 ASX listed companies earnt a total revenue of A$1,278 million in the quarter. Total production costs incurred was A$736 million, resulting in a total cash flow gain from revenue producing activities of A$542 million.

“Greater investment, combined with more funds in reserve show these companies have the potential to make further discoveries, and are better positioned to further develop their projects. Continued investment into the sector is needed to ensure that these projects can progress, to create new jobs and provide ongoing benefits to the Australia economy,” said Mr Pearce.

The Total Expenditure was A$$974 million with A$316 million of that total booked under Operating Cashflows and A$658 million under Investment Cashflows.

With respect to Total Expenditure, 15 companies spend more than A$10 million on exploration led by ASX-DeGrey at its Hemi Gold discovery with A$31 million.

243 more companies spent more than A$1 million on exploration thereby in AUSTEX view maximising their opportunity to advance their flagship Project for shareholders.

620 companies spent in excess of $100K. Close to 100 companies spent less, some of which are quite inactive and clearly need new projects, management and direction.