The expected increase in the demand for the electric vehicle has also led to an increase of 82% of the budget in the global exploration for cobalt and lithium in the year 2018. Based on the reports of S&P Global Market Intelligence, since 2015 the budget for the exploration of cobalt and lithium has gone up by 500%.
The overall budget of the non - ferrous metals has gone up by 19%. Non-ferrous metals are those metals that are free from iron. The budget for these non-ferrous metals has reached $US10.1 billion for the year 2018.
Since 2012, a slight upward trend is seen in the number of mining companies in terms of the exploration budget. There was an increase in the number of companies by 8%. It has now reached to 1651 companies as compared to the previous year.
The Associate Director of Metals & Mining Research at S&P Global Market Intelligence, Mark Ferguson, stated that there has been an improvement in the prices of the metals as well as the margin. As a result of which producers are encouraged to expand their exploration.
In the same duration of time, a further improvement was seen in the junior explorers as they were also supported by the equity market. As a result of positive equity market support, there was also an increase in the size of complete financing. This has led the junior explorers to increase their budget by 35% in the year 2018.
If the data from 2012 and 2018 are compared, there were around 900 companies less in 2018. Even though there were improvements but equity market support and industry-wide exploration level from 2010 – 2012 was much ahead than the data which is recorded in the year 2018.
As a result of the industry recovery, the budget for gold exploration got benefited the most. The budget in the year 2017 was US$4.05 billion which increase in the year 2018 and reached US$4.86 billion in 2018.
Amongst the base metals such as copper, zinc and tin, the most attractive base metal is copper. There was an increase in these base metals’ exploration budget. It got increased from US$600 million and reached US$3.04 billion.
There was an increase in budgets for almost all metals. However, uranium forms a part a part of the exception. Amongst all the exploration destinations, Canada ranks number 1. The budget for Canada was recorded to increase by 31% and has reached $US1.44 billion for the year.
There was a year-over-year increase in the allocations for the country by 31%. As a result of this, there was an increase in the budget by 23%. This has made Australia to position itself in rank 2 which has attached around US$1.33 billion. The united states rank 3 in terms of allocation of budget. The United States’ allocation increased by 34%. In all the three countries discussed above, the total gold share was 55% more. Among the other popular exploration locations, 4 exploration locations are in Latin America which include Chile, Mexico and Peru rank 6 across the globe.
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