Australia: Mining exploration and profits bounce – HSBC

The analysis team at HSBC explains that the lift in commodity prices has improved mining profitability and supported an increase in spending on mineral exploration for Australia.

Key Quotes

“Numbers out today showed mining profits rose 113% y-o-y in Q1 and mineral exploration was up 15% y-o-y. This a good sign for the mining industry and for Western Australia, after five years of tough times. Combined with increased spending on maintenance and repair of existing projects, we see the lift in exploration as helping to stabilise mining investment in coming quarters. As the headwind from falling commodity prices becomes a modest tailwind, the overall economy should gradually lift.”