Gold exploration vital for future supply

Exploration budgets were slashed following the fall in the gold price from the highs that were reached in 2011/2012 and they have since failed to recover. Inadequate exploration funding has resulted in the gold industry potentially facing a secular decline in the long-term. The average mine life for major gold producers has been consistently falling each year and the importance of exploration is becoming more acute. The industry is inching closer to a critical point where M&A activity in isolation will likely be insufficient to sustain current gold production.