A new record has been set with more than 2,800 delegates attending this year’s Diggers & Dealers Mining Forum in Kalgoorlie.
Forum Chairman Jim Walker tells Mining.com.au the number of attendees surpassed the previous record set in 2022, when more than 2,700 delegates descended on the event.
Day three of the forum (7 August 2024) opened to a lower start for the S&P/ASX200, with the index dropping 24.90 points to 7,655.70 and setting a new 20-day low. The index had closed up Tuesday, gaining 31 points or 0.41% to 7,680.60 after setting a new 20-day low.
Sentiment at Diggers has been somewhat mixed, but mostly optimistic despite the recent bloodbath on the share market.
Speaking to on the sidelines of the Diggers & Dealers Mining Forum in Kalgoorlie on 5 August, prime minister hopeful Peter Dutton was fearful Australia is not set up to handle the reality of a recession amid fears the US economy was heading in that direction.
However, Fenix Resources (ASX:FEX) Executive Chairman John Welborn remains optimistic about the company’s growth, but acknowledges it has been a struggle to gain investor interest in a market which is very bearish on the iron ore price.
“Look, I presented (on 5 August) after WA1 – it’s a billion dollar market cap company. It’s a great example of, in fact, exploration success being rewarded by the market,” Welborn tells Mining.com.au.
“Now it’s in a niobium, and it’s a specialty rare earth and it has real relevance to what’s going on in the marketplace. It’s $45,000 a tonne, and they’ve discovered a world-class discovery. But it does show that there is reward for exploration. Certainly, what we’re focused on is return on our investor equity.”
Welborn notes that operational performance is key for the survival of any junior and the market rewards management teams that successfully execute their works programs and growth strategies.
“We’re one of the few companies where you can look back four or five years to our Feasibility Study and then look at the numbers we’re delivering, and they actually align. And it’s something that we hold ourselves accountable for – we tell investors what we’re going to do, and then we do it,” he explains.
Australian Vanadium (ASX:AVL) CEO Graham Arvidson says there’s been mixed views from delegates at Diggers this year about the current state of the market. The CEO, however, is bullish about the growth prospects of the company.
“Look, I think it’s a mixed bag because I think the gold sector, which is the dominant piece here, is pretty positive. I think there’s a broader malaise around the market because obviously, as we’ve been here, we’ve seen significant changes in the market globally,” Arvidson tells this news service.
“So, I think that’s tempered people’s excitement. But at the same time, there’s this story of critical and battery metals that has probably lingered for a while and is emerging back where it needs to be. The lithium guys are probably in a bit of despair, but also if you read between the lines, they’re seeing a bright future. It’s just a question of timing.
“For us in the vanadium sector, we’ve experienced nothing but excitement. We’re working on some really incredible value-adding streams in our business. For us, we think we are one of the most advanced assets in the world from the upstream side of our business.
“We think the timing is going to be just about right in terms of the market fundamentals. And then what we’re really having a lot of conversations and really getting a lot of good connection on is the midstream, the electrolyte business we have that’s already in production.”
Ardea Resources (ASX:ARL) remains on track to deliver a Definitive Feasibility Study (DFS) at its Kalgoorlie Nickel Project (KNP) – Goongarrie Hub in H2 2025. Speaking to Mining.com.au on the sidelines of Diggers, CEO Andrew Penkethman says Ardea has had “really good reception at our booth”.
“A lot of people incredibly positive about our progress and collaboration with the (Japanese) consortium. But contrary to that, for a lot of explorers and developers at the moment, it’s challenging. The profitable gold producers are well-valued, rightly successful. But for most of the other resource sector participants, it’s challenging,” the CEO says.
Penkethman notes it seems for most juniors if they are not on a pathway towards development the market is not rewarding them – even with positive news flow.
Head of Product Mark Gabbitus at global mining-tech company IMDEX (ASX:IMD) says while it’s a tough market for junior exploration companies in Australia given the high cost environment, overall, the sentiment of the forum is optimistic.
“Talking to the drillers this week, it’s surprising how many of them are really positive. They’ve all got rigs turning. They’re a bit down, but not as bad as people might expect,” Gabbitus tells Mining.com.au.
“We really focus on how we can help the drillers and the resource companies get more for their dollar. So, things like our gyro-tech, our core orientation tools, our drilling fluids, directional drilling, if you’ve got a dollar to spend, can I maximise the return on that investment? And that’s what IMDEX is really about.”
Mining services firms feature heavily this year with a large contingent of exhibitors.
Forum Chairman Jim Walker tells Mining.com.au that Diggers has always catered to the entire industry, offering representation to all sections of the mining and investment lifecycle.
“It is the best networking opportunity available to the industry every year ensuring everyone is represented,” Walker says.
“After a number of strong years in the junior exploration space, the lithium and nickel markets have forced a slowdown in spending. With the strong gold price and global interest in more niche, rare earth commodities I am hopeful that the junior exploration sector will remain strong albeit in different commodities to more recent times.”
Write to Adam Orlando at Mining.com.au
Images: Diggers & Dealers, Australian Vanadium & Mining.com.au
