The first two months of 2015 has sustained the gloomy outlook, with SNL Metals & Mining recent report outlining “another set of depressing statistics”.
In its most recent Monthly Industry Monitor, SNL has found “gloomy market conditions for the international mining industry”.
It showed the first two months of 2015 have continued in a downwards trend.
The Pipeline Activity Index (PAI), built from the number of exploration announcement, initial resources, completed financings, and development ‘milestones, fell in February.
This was the fifth consecutive month on month fall, despite a small uptick in mining industry market caps.
“Although SNL's metals price index had improved fractionally in January, it fell to 108 in February,” its report stated.
“Indeed, there were falls for all eight constituents of the index — cobalt, copper, gold, molybdenum, nickel, platinum, silver and zinc.
“While the industry's aggregate market cap bucked this trend by increasing to US $1,350 billion at the end of the month, early indications for March suggest the industry's value will resume its downward trajectory.”
This outlook was further exacerbated by the continually falling iron ore price, which reached a new six year low today.
The level of drilling activity fell to 113 projects last month, compared to 160 in January.
Gold exploration accounted for the majority of these projects, close to 60 per cent.
Copper assays projects fell to 18 from 26 month on month, while nickel and silver projects halved.
SNL also noted a halving in development ‘milestones’ month on month, all of which are located in Latin America.