Australian mineral prospectors double fund inflows to A$2.84 bln in quarter - report

St Barbara

11/09/2023 15:00

MELBOURNE, Sept 12 (Reuters) - Australian prospectors
looking primarily for gold, lithium and critical minerals
secured $2.84 billion in funding in the June quarter amid
renewed investor appetite for minerals, particularly those that
will power the energy transition, advisor BDO said on Tuesday. 
    Conditions have improved for explorers after they had moved
into cash preservation mode early in the year, given global
economic uncertainty stemming from China's slow post-COVID ramp
up. Secured funds grew 111% from A$1.35 billion in the March
quarter. 
    As one of the world's major mineral hotspots, Australia's
exploration sector is closely watched as a barometer of trends
in future metals supply.
    "The current quarter appeared to unveil a reset in investor
sentiment, marked by the increase in financing, investment and
exploration spending," BDO said in a report. That appears to
have been helped along by a pause in global interest rate rises.
  
    Gold miner Genesis Minerals  GMD.AX  led the fundraising,
completing a A$466.47 million ($300 million) capital raising
after its purchase of gold assets from St Barbara  SBM.AX . 
    In lithium, Sayona Mining  SYA.AX  and Liontown Resources
 LTR.AX  also secured major inflows.
    Sayona issued A$197 million in equity securities and took
other measures as it develops a hub in Canada's major lithium
region in Quebec. Liontown raised A$118.75 million of debt as it
readies to start production from its northern Australian
operations next year.  
        BDO sees a "relatively strong" pipeline of prospective
IPOs for the remainder of the year, including interest from
Canadian companies looking to list in Australia.
    Given strong commodity prices and relatively weak capital
markets, many explorers are looking to advance their projects
via consolidation, it added.  
    Mergers in the gold sector are backed by the uncertain state
of financial markets and the ongoing record level of gold
purchases by central banks to bolster their foreign exchange
reserves, it said. 
    Central banks bought the most gold in the first half since
at least 2000, the World Gold Council said last month.  
    ($1 = 1.5540 Australian dollars)

 (Reporting by Melanie Burton; Editing by David Holmes)
 ((melanie.burton@thomsonreuters.com Twitter: @MelanieMetals;
+613 9286 1421; Reuters Messaging:
melanie.burton.thomsonreuters.com@reuters.net))