Our Operating Environment
FY17 Market Conditions
- Increased activity in the minerals sector – particularly in Canada, Latin America, West Africa and Australia
- Activity uplift initially associated with stronger gold price – now a broader-based recovery
- Major, intermediate and junior companies well-funded with increased budgets
- Large resource companies – continuing to focus on increasing efficiencies and cost reduction
- New technologies are gaining momentum in order to drive efficiencies and productivity
- Mining companies need to replace depleting reserves
Despite increased expenditure, gold and copper discoveries are not keeping up with production. Grades are decreasing and are deeper. Ore bodies are becoming more complex, resulting in longer lead times to develop.
MAJOR GOLD DISCOVERIES
Source: S&P Global Market Intelligence
MAJOR COPPER DISCOVERIES
Source: S&P Global Market Intelligence
REFLEX Instruments on Hire
- As more rigs return to work, additional instrumentation is required – all commodities
- Instruments on hire increased during calendar 2014 to calendar 2016, despite a significant decrease in exploration expenditure over those three years
- 30 June 2017, 42% increase compared to 30 June 2016
- Increased demand for and adoption of traditional survey and core orientation instrumentation, together with more recent technologies
- Most newer technologies yield higher rental rates due to greater value add for clients