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Mining exploration started 2025 on a strong note, as most key metrics tracked by S&P Global including significant drill results, initial resource announcements and project milestones all saw upticks in January compared to December 2024.
These metrics — alongside financings, commodity prices and industry market capitalization — are used to calculate S&P’s Pipeline Activity Index (PAI), which rose 5% to a score of 85 in January. Gold-related PAI led the way with an 8% increase, thanks to the precious metal’s strong performance, while base metals PAI was up 3%.
Despite the recovery, the January PAI remains a distance away from that of October 2024, which scored 98 — the highest in over a year.
Exploration rebounds
The month of January saw a rebound in drilling metrics after a slow end to 2024, with increases across the board.
Total projects increased 17% month over month, while reported drill holes were up 2%. Year over year, however, projects and drill holes were down 6% and 1%, respectively.
Project drilling also increased across all stages of development: Early-stage projects rose 31%, mine site 27% and late-stage 4%.
The top result came from Aya Gold & Silver’s Zgounder mine in Morocco, which reported an intersection of 21 metres grading 2,165 grams of gold per tonne.
January also saw six initial resource announcements, compared to four in December. Of the six, half were gold-focused projects, but the most notable was an initial copper resource for Minsud’s Chinchillones Complex deposit in Argentina.
In terms of positive milestones, there were seven registered in January — one more than December — all of which were for gold-related projects.
Five were production related, including Artemis Gold’s first pour at the Blackwater mine in British Columbia. Asante Gold also completed a feasibility study to assess the potential extension to its Bibiani mine in Ghana, while Alamos Gold started construction at the Lynn Lake project in Manitoba.
Market rallies
The Exploration Price Index — which forms part of the PAI — also rebounded in January, led by gold’s average increase of 2.5% month over month. Other commodities, namely platinum and copper, also recorded gains, while battery metals nickel and cobalt continued their declines.
Despite mixed metal price performances, mining equities valuation increased overall. The total market capitalization of the 2,663 publicly listed mining companies tracked by S&P rose 2.4% to $2.13 trillion, up from $2.08 trillion in December.
Financings dry up
Fundraising by junior and intermediate mining companies was the only PAI metric in the red in January.
For the month, aggregate financing in the sector dropped 48% to $463 million, as the total number of transactions fell nearly 60% to 143, marking the lowest monthly total in three years.
The number of significant financings, defined as transactions valued at over $2 million, also fell to 31 from 66 in December 2024. Additionally, there was only one transaction valued at over $50 million, down from four in December 2024.
Despite the metal’s strong start to the year, gold-related financings declined for the third consecutive month, down 59% to $153 million. The number of transactions also reached a multiyear low of 56.
Furthermore, the number of significant financings in the gold sector more than halved, dropping to 13 from 29 in December. Notably, no transactions were valued at over $50 million.
