2020 Global Geophysical Budget will be reduced by 29%
As the COIVD-19 epidemic continues to put pressure on the market and force many countries to enter a full or partial blockade, the global planned exploration expenditure in 2020 may be reduced. As junior survey companies are unlikely to receive much support in the next few months, the survey field will be hit hardest, and survey funding is expected to be reduced by 42%. Producers are not immune, as they face lower metal prices and full blockades in the regions they operate in, which may reduce their budgets by 23%. Therefore, S & P Global Market Intelligence expects the global survey budget to drop by 29% to US $ 6.9 billion in 2020.
Based on the results of the 2019 survey and applying the trend records of the previous market downturn, while adjusting for production shutdowns in specific countries, S & P obtained this forecast. S & P ’s algorithm reduced the total 2020 exploration budget by US $ 6.6 billion, plus estimates for budgets of companies with expenditures below US $ 100,000 and private companies with no data for 2019. S & P expects the 2020 global exploration budget The total amount is US $ 6.9 billion, a decrease of US $ 2.9 billion from 2019.
Since 2020 is a very difficult year for the mining industry, it is expected that the decline in exploration activity will further weaken the industry assets that have been declining since 2012. Assuming that the impact of the new coronavirus begins to subside before the middle of the year, the improvement of the global economic situation in the second half of 2020 should cause the prices of many industrial commodity metals to rise. As a result, S & P expects that the exploration budget for 2021 will rebound slightly, as junior survey companies will again use the stock market to raise funds, and producers will also restart suspended exploration proj