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Gold Investing BDO: ASX Gold Explorers Lead Way for Funding in Latest Quarter
BDO’s natural resources and energy team has published its report for the December 2024 quarter.
The firm has been compiling data on the cash positions of ASX-listed exploration companies since 2014, examining cashflow, leading explorers and commodities, and providing future-forward insights.
A key finding from the report's latest edition is that gold companies continued to lead the way for fundraising efforts, with five out of the top 10 "fund finders" being gold explorers.
Fund finders are companies that have raised AU$10 million or more, according to BDO.
Spartan Resources (ASX:SPN,OTC Pink:GYYSF)and Capricorn Metals (ASX:CMM,OTC Pink:CRNLF) took the lead, raising AU$220 million and AU$200 million in proceeds, respectively, from issues of equity securities.
BDO's data shows that gold explorers have dominated as fund finders since the March 2024 quarter, underlining the yellow metal’s appeal as “a safe-haven asset with an investor preference for developers and near-term producers.”
For the December 2024 quarter, copper-gold and lithium explorers followed gold companies in terms of fundraising.
In total, 57 fund finders drove around 75 percent of the period's inflows, raising an average of AU$38.11 million each.
“Financing cash inflows grew to AU$2.88 billion, representing a 48 percent increase on the AU$1.95 billion of funds raised in the prior quarter,” BDO states in its report. “In addition, financing inflows averaged AU$3.78 million per company, which is 24 percent higher than the two-year average of $3.05 million since December 2022.”
BDO referenced the record-high gold price as a major factor in gold exploration funding, noting that its rise follows global deflationary fiscal policy and political uncertainty.
Gold price hitting new highs
Citing the Department of Industry, Science and Resources' Resources and Energy Quarterly, BDO notes that the outlook for Australian gold explorers and developers remains optimistic.
New exploration projects and developments are expected to drive production growth in 2025.
One new market entrant is Horizon Minerals' (ASX:HRZ) Phillips Find gold operation, which transported its first ore in mid-February. Phillips Find is part of the company's Coolgardie portfolio.
M&A activity is also heating up, with Ramelius Resources (ASX:RMS,OTC Pink:RMLRF) set to take over Spartan Resources in a deal worth AU$2.4 billion. Their aim is to create a leading mid-tier gold producer.
As mentioned, the gold price has already reached several new all-time highs in 2025.
Concerns over tariffs announced by US President Donald Trump, geopolitical uncertainty and heightened market anxiety have added tailwinds for the metal in recent weeks.
Gold hit yet another record on Monday (March 31), rising to more than US$3,100 per ounce.
