BDO said that after funding in the March quarter of this year hit a four-year low, it may be difficult for Australian companies that are looking for minerals but have not yet participated in production to raise funds for most of the year. The consulting firm ’s report analyzes regulatory documents and covers early miners who seek to raise funds to develop their assets. The report shows that in the uncertainties related to the coronavirus epidemic, cash inflows in the three months to March have fallen by 48% from December to US $ 834 million, a decrease of 8.0% from March 2019.

As of the end of the quarter, about 43% of the 650 companies surveyed had less than $ 1 million in cash. Sherif Andrawes, global head of natural resources at BDO, said: "For exploration companies, they usually don't have income ... This is almost to say that they have lost 48% of their income." He said: "The situation is not as bad as it is now.

When we reach the June quarter, I expect that we will see less cash, less administrative expenditure, and less exploration expenditure." As the global economy Near the end of the year, the recovery may come. The sharp decline reversed last year's strong growth in exploration spending. Developers with clear assets, especially those with safe-haven gold, will find it easier to raise funds from institutional investors, especially considering the mining industry is stronger than other industries affected by COVID-19 travel restrictions. Small companies with no assets rely more on the retail market, and companies that focus on battery minerals, oil and gas, copper, nickel, zinc may encounter difficulties.