Mining companies budget for exploration spending

The lower prices received for mineral commodities have affected corporate balance sheets but the search by producers for new reserves continues, as the chart below indicates.

The 1992 figures were supplied by Metals Economics Group (MEG) of Halifax, in its study of the exploration budgets of Canadian-based companies. The research outfit’s numbers were compiled from published company plans and from personal communications. In some cases, planned and actual expenditures differ. MEG’s numbers were originally published in American funds, which have been converted into Canadian funds at a 1.2% exchange rate.

The 1993 figures were compiled from a telephone survey, conducted by The Northern Miner Magazine, of the companies and represent budgeted amounts for undeveloped properties.

Budget ($millions)

Company 1992 1993

Placer Dome 69.2 60

Falconbridge 51.5 36

Inco 44.3 35(US)

Noranda 38.5 24

Hemlo 26.5 15

Cominco 25.7 N/A

Lac 18 N/A

Rio Algom 14.8 14.4

Teck 14.3 15

Hudson Bay 12.8 16

Cameco 12 10

Minnova 12 09

Soquem 11.9 07

Echo Bay 7.2 07.2

Westmin 6.6 N/A

Metall 5.9 3-4

Agnico Eagle 5.8 03

Brunswick 5.8 07.5

Cambior 5.5 06

Granges 5.2 04.5

Wharf 5.2 N/A

TVX Gold 4.2 03.5

Prime Equities 4.1 N/A

Rayrock Yelwkf 4.1 05

Aur 3 03.5

Falconbrdg Gld 1.9 00.3

Conwest 2 01.2

Homestake N/A 01.5

(incorporating Int’l. Corona, Stikine)