minex 2011 world exploration trends

Global Exploration TrendspAn Overview of Worldwide Spending

David CoxVice President

Metals Economics GroupMetals Economics Group

MINEX Forum 2011October 5, 2011

© Metals Economics Group, 2011

Corporate Exploration Strategies‐Methodology

CES is the acknowledged source for worldwide exploration

budgets and strategies

• 22nd edition of CES in 2011

• More than 3 500 companies directly contacted and• More than 3,500 companies directly contacted and

interviewed

• About 2 400 active explorers are covered• About 2,400 active explorers are covered

• Companies spending more than US$100,000/year

P i d b t l di d i PGM• Precious and base metals, diamonds, uranium, PGMs,

some industrial minerals

A l i b t 95% f l b l f l ti


• Analysis covers about 95% of global nonferrous exploration

Exploration Spend vs Metals Prices, 1993‐2010

© Metals Economics Group, 2011Source: Corporate Exploration Strategies

What Factors Drive Exploration Spending?

• Metals prices

• Available risk capital

• Reserves replacement efforts• Reserves replacement efforts

• Discoveries

• Changing exploration costs

• Mining law and investment incentivesMining law and investment incentives

• Availability of geological survey information


Exploration by Target (% of annual total)


Worldwide and Russian Nonferrous Exploration Spending by Target, 2010

Worldwide Russia


Exploration by Stage of Development (% of annual total)


Worldwide and Russian Nonferrous Exploration Spending by Stage of Development, 2010

Worldwide Russia


Exploration by Region, 2001‐2010 (% of annual total)


Top 10 Destinations in 2009 and 2010

2009 2010

Russia5%


Exploration by Company Type (% of annual total)


Cumulative Explo by Company Type, 1998‐2010 (US$ mil)


Exploration by Headquarters, 2001‐2010 (%)


Significant Junior and Intermediate Financings

© Metals Economics Group, 2011Source: MEG Industry Monitor

Total Equity Raised by Destination (Gold) 2008 – 1H 2011


Equity Raised for Exploration (Gold) 2008 – 1H 2011


Significant Gold Drill Results Announced, 2008 – Aug 2011


Total Equity for Development (Gold) 2008 – 1H 2011


Exploration Spend vs Metals Prices, 1993‐2011


Russia’s Share of Total Nonferrous Exploration, 2000‐2011


Russia’s Share of FSU Nonferrous Exploration, 2000‐2011


METALSECONOMICSECONOMICSGROUP

www.metalseconomics.com+1 902-429-2880

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minex 2011 world exploration trends

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