CAPITAL MARKETS

Australia top pick jurisdiction for mining investors

Australia a priority for investors but struggles to compete on risk.

 Report cover

Report cover

Australia is the world's top-pick jurisdiction for mining investors - but the country continues to struggle to compete on risk with its global rivals, according to the new MNN Research Report 2023.

The report, by Mining Journal Intelligence (MJI), a research division of MiningNews.net publisher Aspermont, provides a comprehensive package of mining data and analysis for Australia-focused investors, with information sourced from MJI's suite of global reports, offering insights in four core areas: development opportunities, C-suite priorities, risk, and finance.

Findings show Australia remains a key priority for investors, with 73% of respondents in the MJI's annual Investor Sentiment Survey targeting new investments in the country in 2023.

The figure is far higher than the 47% in the previous year's survey and places Australia top of the pack - some way above second-placed Canada, at 59%, and the US, at 48%.

But the picture on risk is less positive. The Australia-Oceania region scored an average of 62 in the Investment Risk Index, the main indicator of overall risk in the MJI's World Risk Report.

The report measures risk using 10 external ‘hard' risk metrics, including MineHutte's Regulatory Risk Ratings, and ‘perceived' risk, measured through an annual World Risk Survey.

The score of 62 represents a BB rating, placing the region fourth globally, and significantly behind global leaders Canada, which scored 76, or AA, and the US, at 72 (A).

While the Australia/Oceania score is unchanged on the previous year's, the figure is down from 70 or an A rating in the first World Risk Report in 2017.

The MNN Research Report 2023 showed the Australian Securities Exchange (ASX) remained the dominant exchange for mining financings globally, despite a year-on-year decline.

The ASX saw 463 secondary financings launched by mining companies in 2022, with a combined value of US$5.09 billion - nearly half the global total of US$12.11 billion.

The figure was down from 484 financings worth US$6.93 billion the prior year.

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Financings

 

But the 27% drop in value was lower than the 41% fall seen across the main mining exchanges globally (including in Canada, London and New York), from US$20.38 billion.

The Project Pipeline Assets section reveals Australia's 20 best development projects, determined through our own evaluation method, while the Global Leadership chapter features interviews with some of the biggest names in Australian mining on key themes and strategies, this year focusing on CEOs' number one priority: safety.

The MNN Research Report is available for sale online and is free with a MiningNews.net Standard Subscription.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

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