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TO BE NUMBER 1 IN WHAT WE DO
MACA.NET.AU

The flood has already slowed to a trickle ate to get their attention. worse than fork out for the delegate rate at
and with several floats being pulled in recent Given the current state of capital markets, Diggers & Dealers. Given the competition for
months, executives of new companies may companies will also be making the most of talent, you would make up for the fee in job
find the audience less accommodating this the opportunity for face-to-face meetings to offers before the keynote address is finished.
time around. explain why they are undervalued and set for The labour pool in WA feels shallower
There is hope, however. Of the 15 compa- a share price rebound. than ever and Pearce believes it is looming
nies to list since the beginning of May, more as a major impediment to industry growth.
than half held their value despite the torrid Cost pressures “We need 20,000 positions filled in the
market conditions. sector and we have no idea where we are
And, while share prices have taken a When it comes to the “digging” side of the going to get them from,” he said. “We want to
hammering, there appears lit- conference, the most serious conversations see the Federal Government open up skilled
tle dispute that the underlying will be about cost escalation, and not just migration. Engineers, geologists, trades and
fundamentals for commodities when delegates realise its $13 a pint in the technical skills are all required, and we are
remain strong. That means if Exchange Hotel. very supportive of seeing that opening of in-
a company can pull together Inflation is dominating the global agenda ternational migration.”
a portfolio which includes but the issue is even more acute in the Aus- Pearce said international arrivals could
something other than moose tralian mining sector where companies are also provide a net benefit to the industry by
pasture, it could still find willing battling against higher costs thanks to creak- guiding future workers.
punters around town. ing supply chains and increased energy “Those skilled migrants have got the abil-
prices. ity to help train the next generation of Aus-
Open border Companies (AMEC) chief executive Warren tralian workers,” he said.
Association of Mining and Exploration
policy Pearce told Paydirt the cost environment Dealing before digging
was a massive concern for his members.
After two years of WA-only “We are seeing some projects which Diggers & Dealers is always a prime op-
festivities, Diggers & Dealers looked very promising not long ago, look portunity for deals to be nutted out and the
welcomes back interstate and less likely to get up in the current climate, market conditions mean it is even more likely
international guests in 2022. with several projects being pulled back from this year.
Will they come and how will final investment decisions,” he said. A combination of falling values, cashed up
this change the mood? The bankers and financiers will be grilling producers and East Coast bankers hungry
The anecdotal answer to developers about their capex and opex es- for fees could see a full M&A bandwagon
the first question is, yes. Book- timates, while the local gold miners will be driving down Hannan St every day of the
ings in Kalgoorlie’s limited hos- preparing presentations which show they conference.
pitality options were filled out have cost creep under control. So, who are the predators and who is
months ago and even the pri- the prey? In the gold space, eyes will be
vate rental space has sparse on whether Barrick Gold Corp’s new Perth
offerings as the financiers, in- office makes its presence felt around the
vestors and influencers arrive booths.
from Sydney, Melbourne and If the Barrick team is in town, there ap-
elsewhere. pears plenty of options, from the obvious –
In 2020 and 2021, the lack De Grey Mining Ltd and its massive Mallina
of visitors meant the event was project in the Pilbara – to the more outra-
a very parochial affair. This geous – what odds a swoop for Gold Fields
probably played into the hands Ltd and Northern Star Resources Ltd, giving
of junior explorers, prospec- the Canadian major instant top dog status in
tors and services companies Australia gold?
who suddenly found larger In the base and battery metals space, IGO
miners willing to meet with Ltd and Sandfire Resources Ltd have prov-
them given the lack of bankers en willing to make ambitious moves for as-
and brokers wining and dining sets and/or peers in the last 12 months and
them around town. there are still several options open to them.
What will the interstate and international Meanwhile, could lithium miners such
delegates be looking for? A keener insight as Pilbara Minerals Ltd be encouraged by
into the battery minerals story, which has bankers and financiers to look at the emerg-
changed so much since they were last in Former conference owners Kate Stokes and ing juniors in the State?
Kalgoorlie in 2019, is sure to be at the top of Nick Giorgetta at last year’s Gala dinner The majors will also be circling with BHP
their agenda. Ltd still eager to put its foot on additional
Goldman Sachs and Credit Suisse ana- Talent show nickel resources and Andrew Forrest’s
lysts are unlikely to be welcomed at the Fortescue Future Industries/Wyloo Metals/
lithium company booths after their bearish The other major concern around cost is Tatterang group all remain on the lookout for
forecasts for the lithium market in June but wages with the skills shortage hurting almost nickel, copper, iron ore, hydrogen and PGM
there will be a queue of nickel, rare earths, every company. If you are a disaffected geol- opportunities.
vanadium, PGM, and HPA players desper- ogist, engineer or boilermaker, you could do

aUSTRaLIa’S PaYDIRT JULY 2022 Page 31