The following research article is an excerpt of the State of the Market: Mining report for Q4 2017, a detailed analysis of mining industry performance that includes expert commentary from S&P Global Market Intelligence.
Last year, we saw the first annual increase in exploration budgets for nonferrous metals after four consecutive years of declining expenditure. Having plunged to a number in 2016 that was barely one-third of the record high of US$21.5 billion allocated in 2012, the total recovered to an estimated US$8.4 billion in 2017. Moreover, by the end of December, the market value of the industry's listed companies had risen to US$1,559 billion, more than twice the level of January 2016.
Metals prices have benefitted from the improved global economy, and from a recently weaker U.S. dollar, in which most commodities are valued — in January 2018 the dollar’s tradeweighted value touched its lowest level since December 2014. Comments by Steven Mnuchin, the U.S. Treasury Secretary, that a weaker dollar was “good for trade," added to the bullish sentiment for natural resources.
- Market for mining
- Pipeline activity index (measurement of the mining exploration sector)
- Mergers & acquisitions
- Mining finance
- Analysts' metals price consensus