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A Return to Africa

31 January 2019

One of the most significant geographical areas of opportunity for miners is the African continent. As the sixth biggest sector in South Africa mining continues to play a significant role towards economic growth, contributing R8 for every R100 produced by the national economy.

Overlay the contribution that the mining sector makes to the UK listed markets where mining and natural resources companies continue to see the opportunity and potential of an AIM listing with the sector seeing the largest investment from IPO and secondary fundraisings on the market in the year to 31 December 2018.

These themes are further re-iterated in a recent article published by BDO’s Australian Mining team in which the team note that Africa has always held its reputation as the land of opportunity, however the decline in commodity prices from 2013 to 2016 following the mining downturn forced Australian companies to focus on “low risk” assets closer to home. The companies that made it through the tougher times were able to do so by reducing administration costs. The continuation of the improved performance in the last few quarters, together with the increased availability of funds and rising costs in Australia, is driving the appetite for ASX explorers to go back into Africa.

With the Indaba and 121 Mining conferences in Cape Town just around the corner, our Natural Resources team talk through why they are excited to attend and what topics they anticipate will be the hot conference topics.