World and Brazilian Exploration Trends David Cox Senior Sales Executive SimeXmin Ouro Preto, Brazil May 13, 2014
Corporate Exploration Strategies Methodology CES is the acknowledged source for worldwide exploration budgets and strategies 25 th edition of CES in 2014 More than 3,500 companies surveyed About 2,400 active explorers are covered Companies spending more than US$100,000/year Precious and base metals, diamonds, uranium, PGM, some industrial minerals Analysis covers about 95% of global nonferrous exploration
Exploration vs Metals Prices, 1989-2013
Worldwide Exploration by Region, 2013 Pacific/SE Asia 67% United States 72% Latin America 267% Australia 131% Canada 133% Rest of World 165% Africa 165%
Worldwide Exploration by Region (% of annual total) 30% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 25% 20% 15% 10% 5% 0% Australia Canada United States Africa Latin America Pacific/SE Asia Rest of World
Top Countries Share of Exploration in Latin America 2012 2013 Guyana 15% Suriname 16% Colombia 87% Argentina 99% Guatemala 08% Bolivia 08% Nicaragua 07% Ecuador 06% Panama 03% Other countries 19% Mexico 229% Colombia 82% Guyana 08% Guatemala Nicaragua 08% 1% Suriname 1% Argentina 76% Ecuador 08% Other countries 33% Mexico 238% Brazil - 109% Chile 198% Brazil 113% Chile 236% Peru 196% Peru 178%
Latin American Budgets by Country, 2013
Latin American Nonferrous Exploration Total (US$ mil) Top Latin American Sub-regions Share of Exploration Total, 2004-2013 Latin American Exploration Total $6,000 30% $5,000 $4,000 $3,000 $2,000 $1,000 $0 Peru Mexico Brazil Chile Argentina Colombia 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 25% 20% 15% 10% 5% 0% Share of Latin American Nonferrous Exploration Total
Global Iron Ore Exploration Budgets, 2013 $174 Billion
Worldwide Exploration Budgets by target, 2013 (US$1443 billion total) Worldwide Latin America Diamonds 01% Uranium 05% Other 158% Gold 44% Base Metals 396%
Diamonds 3% Uranium 38% Iron ore 108% PGM 07% Worldwide Exploration Budgets by Target with Iron Ore, 2013 (US$1617 billion total) Other 114% Gold 411% Base Metals 291%
Latin American Exploration by Target (% of annual total) 60% 50% Gold 40% Base Metals 30% 20% Other 10% 0% Diamonds PGM Uranium 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Worldwide Exploration Budgets by Region with Iron Ore, 2013 Pacific/SE Asia 61% United States 66% Latin America 247% Canada 125% Rest of World 159% Africa 177% Australia 165%
Iron Ore Exploration Budgets by Region, 2013 Canada 62% United States 14% Pacific/SE Asia 08% Latin America 88% Rest of World 111% Australia 442% Africa 275%
Global Iron Ore Exploration Budgets, 2013
Worldwide Exploration by Stage (% of annual total) 50% Grassroots 40% Late Stage 30% 20% Minesite 10% 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Latin America Exploration by Stage (% of annual total) 60% 50% Grassroots 40% 30% Late Stage 20% Minesite 10% 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Grassroots Exploration Budgets by Country 2013 79 other countries and regional allocations account for 106%
Cumulative Budgets by Company Type 2004-13 (US$ million) $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 $0 Majors Intermediates Juniors Gov't/Other
Exploration by Company Type, 2004-13 (% of annual total) 60% 50% Majors 40% 30% Juniors 20% 10% Intermediates Gov't/Other 0% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Latin America Exploration by Company Type, 2004-13 (% of annual total)
Largest Brazilian Exploration Budgets, 2013
Brazilian-based Company Exploration Budgets 2013
Financings for Exploration, 2008 Feb 2014 UPDATE SNL Metals Economics Group, 2012
Exploration-oriented Financings by Main Project Location, 2009 2013
Where are they Drilling? 2012 Feb 2014
Junior Budgets vs Exploration, 2004-2013
Average Exploration Budget-to-Revenue Percentages for the Top Earners SNL Metals Economics Group, 2012
Exploration Looking Forward SNL Metals Economics Group, 2012
Worldwide Exploration by Headquarters 2004-13 no 50% 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% Canada Australia Rest of World Europe Latin America United States Africa Pacific/SE Asia
What Can Countries do to Increase Exploration? Importance of even one $ of exploration pays dividends to the country Maintain stability of mining laws and taxes Limit bureaucracy Increase funding for more geological surveys Offer exploration incentives Provide long-term confidence
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