Exploration spending set to hit new high

BOOMING commodity prices and a growing demand for environmentally friendly metals and minerals has put ASX-listed resource exploration companies in a position to spend more than ever.

New research from business advisory firm BDO shows exploration spending by 678 mineral, oil and gas companies listed on the bourse hit a seven-year high of $666m in the June quarter.

The expenditure was powered by a fifth consecutive quarter of fundraising growth, which saw a record $2.54bn raised.

More than 80 per cent of exploration companies reported cash balances over $1m, the highest amount since BDO’s survey began in 2013.

BDO’s global head of natural resources Sherif Andrawes said the level of funds meant the sector could surpass the record average expenditure highs seen in 2014 by the end of the year.