Diggers & Dealers Recap 2024
“The drive for exploration remains strong, but the pressure is on, with many companies eagerly awaiting results.”
JACK CULLITY, DIRECTOR OF M+HL, GIVES HIS INSIGHTS FROM DIGGERS & DEALERS 2024
The annual gathering at Diggers & Dealers once again highlighted the resilience and optimism within the exploration and mining community despite an equity selloff at the beginning of the week.
With commodity prices subdued and even strong gold prices not translating into market buoyancy, raising capital remains a tough challenge for explorers. An equity sell-off at the beginning of the week didn’t help the mood either. Each year Diggers & Dealers is a great opportunity to catch up with our clients and long-time friends in the industry. The conversations and meetings I had on the sidelines provided helpful feedback and insights into the legal and land access issues facing the industry.
Key Observations
Cautious Optimism: While explorers and miners are known for their buoyant spirit, the current market conditions have led to a more restrained outlook. The challenge of raising funds persists, despite favourable gold prices. History tells us that companies will continue to explore and develop their projects knowing that markets turn, new commodities come to the fore and good projects prevail.
Exploration in Focus: The drive for exploration remains strong, but the pressure is on, with many companies eagerly awaiting results.
Heritage and Approvals: Increasingly, the industry is also feeling the strain of delays. Some of these are due to protracted native title and heritage discussions which have occurred for many reasons. It’s hard to cut through. Delays in approvals are having a cascading effect, stalling drilling programs/mine development and disrupting news flow, which in turn stalls share prices and frustrates investors. This ripple effect is also affecting service providers across geological, drilling, and mining sectors who see their order books impacted.
Navigating challenges: The repeal of the Aboriginal Cultural Heritage Act (2021) has led to stronger positions being taken by Traditional Owners on native title and heritage issues. While we continue to have constructive dialogues, these challenges come at a time when the industry can least afford it. Collaborative efforts with all stakeholders are crucial to overcome these hurdles.
Director Jack Cullity onsite with Alistair Thornton of Black Cat Syndicate.
How much does M+HL assist you?
We simplify the complexities of native title and heritage access and get you on ground faster. Our strong relationships with TO’s and their representatives ensure a collaborative and commercial approach between all stakeholders. Our team of mining lawyers and commercial advisers are available to assist you with your project development – including strategy, agreements, mining act compliance and negotiations. Finally, how good are the Olympics…! The ups and downs, passion, stories of resilience (and the results) are truly inspiring. I see many parallels with the mining industry.