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Conference season

as important as ever

his edition hits the stands at the back the mining and exploration sectors by declaring them an
Theight of the – slightly delayed “essential industry”.
– mining conference season but From within the mining cocoon, it feels this was the only op-
with international and interstate del- tion McGowan had but on reflection, it could’ve gone in many
egates unable to attend, do confer- different directions. The industry has a big reliance on shifting
ences such as Diggers & Dealers, people in large numbers and any imposition of wider restric-
Africa Down Under or the Australian tions would’ve had a severe effect on productivity. Similarly, a
Nickel Conference still matter? single outbreak on any remote or regional mine site would have
The answer is yes and now more than ever. The interstate caused untold disruption, potentially leading to regional com-
and international visitors may not be in attendance but with the munities being put under great pressure and huge swathes of
sector buoyant and dripping with new stories, anyone who can the industry grinding to a halt.
attend will be in Kalgoorlie for Diggers or in Perth for Africa The hard border closures have obviously caused logistical
Down Under. problems regarding people movement from interstate and over-
There is also a sense of unity. For the Western Australian seas, but those challenges are nothing compared to the disrup-
sector it is a chance to celebrate its own achievements this year tion mass quarantine would have led to.
and make a vital contribution to the economy of one of the in- For the industry, having received the approval of government,
dustry’s most iconic towns. it couldn’t afford to erode confidence by erring in its response to
For the African-focused miners, explorers and service com- the pandemic. The effort has been remarkable and has show-
panies, Africa Down Under presents an opportunity to reinforce cased the active role the mining sector plays in the health and
the relationship with the continent via live streaming and video economic wellbeing of the WA community.
technology. The message at Africa Down Under – which will Amid all this, parts of the industry are enjoying unparalleled
be live streamed straight into the ministries around Africa and success.
investor boardrooms across the world – will be one of solidarity, In exploration it feels like the dams have burst after a decade
a chance for the Australian sector to say: “We may not be trav- of drought. A combination of technological innovation, new am-
elling to Africa as much as we would like but you are still at the bitious thinking and investor interest have coalesced to create a
front of our minds and we are pressing ahead with our invest- unique environment for explorers.
ment plans on the continent.” Research by BDO identified a 60% increase in capital rais-
At Diggers, Mark McGowan will become the first sitting Pre- ings among ASX-listed junior explorers in the June quarter to
mier to present the keynote opening address. After all the po- $1.34 billion, coming off a four-year low of $834 million in the
litical debate over nearly 30 years of Diggers & Dealers, who March 2020 quarter. It also represented a 12% increase from
would’ve thought it would be an ALP Premier who was the first the $1 billion financing inflows recorded in the June 2019 quar-
active parliamentarian to speak at the conference? ter. The quarter saw 28 companies raise funds of $10 million or
Former Prime Minister John Howard spoke to a rapturous au- more – up from 12 companies in the March 2020 quarter.
dience in 2019 and we have seen visits from various mines min- Those numbers show just how dramatic the swing towards
isters and federal MPs down the years but this is the only time exploration stories has been from the investment community
an active politician has been on the programme. but it is also translating into real success on the ground.
It is hardly surprising the Diggers & Dealers management Since the turn of the year companies such as De Grey Mining
would drop its aversion to government representatives this year, Ltd, Chalice Gold Mines Ltd and Legend Mining Ltd have caught
both because there is little choice while the world remains in the imagination with virgin discoveries in new terrains.
isolation but also as there can be few occasions when industry Behind them is a group of explorers actively regenerating
and government have been working in such harmony as they brownfields stories (Bellevue Gold Ltd, Mincor Resources NL)
are now. and making new discoveries in mature belts (Musgrave Miner-
As I sit here in my West Perth office six months after the crisis als Ltd, Rox Resources Ltd).
gripped the globe, I can catch public transport to a meeting, Not every exploration success is going to translate into a min-
have a coffee (or a beer) and even shake hands if I want, all in ing success but the big capital raisings ensure companies can
the confidence that WA is free from community transmission of focus on testing prospects to their limits, rather than focusing
coronavirus. This is in stark contrast to other parts of the coun- purely on keeping momentum in the stock until the next capital
try and the world. raising.
It is a remarkable situation and is testament to organisation,
communication and pragmatism from government, but also the
mining sector.
We are in this position because government, business and
community have shared interests. At the start of the outbreak,
the WA Government made the crucial, but risky, decision to dominic@paydirt.com.au @DominicPiper

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