PERTH (miningweekly.com) – New data by independent researcher Austex into the cash flow of 733 ASX-listed resource companies has shown that total exploration was a record A$974-million in the fourth quarter of 2021.

This expenditure was up from A$845-million spent in the third quarter of last year on exploration, 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 Association of Mining and Exploration Companies CEO Warren Pearce.

“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.”

In the fourth quarter of 2021, 733 ASX resource companies submitted cash flow reports, up from 693 companies in the third quarter of 2021. Total capital raisings increased to a record A$3.17-billion, a 37% increase from the A$2.312-billion raised in the third quarter of 2021 and A$1.823-billion in the fourth quarter of 2020.

Seven of the companies raised more than A$100-million, with 63 raising more than A$10-million, and 229 companies raising more than A$1-million.

Austex Resource Opportunities founder Rob Murdoch said that the significant growth in capital raisings was 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 earned a total revenue of A$1.2-billion in the quarter. Total production costs incurred were 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 Australian economy,” said Pearce.