There were precious few surprises on the first day of the 2023 Diggers & Dealers Mining Forum apart from the fact the temperature hit 28C – a bit warm for this time of year in Kalgoorlie-Boulder.It was arguably the hottest the mood got on a day when some of the bigger stories at this year’s talkfest took to the stage to spruik their wares without raising the celsius.Unfortunately, technical difficulties marred the keynote presentation from UK economist and academic Linda Yueh, who was being beamed in from the northern hemisphere. Maybe next year the keynote speaker will again be present in the Goldfields Arts Centre.The company presentations were bookended by Pilbara Minerals (ASX: PLS) in the morning – the best-performing pure-play lithium miner – and the leader of the next generation of producers Liontown Resources (ASX: LTR) late in the afternoon.Not much more needs to be added to the lithium narrative. Western Australia’s leadership position in the world of hard-rock lithium is well understood, though efforts by companies to add value beyond 6 per cent spodumene concentrate are proving decidedly more tricky than first imagined.Even building a new mine is proving, well, increasingly expensive.Another lithium hopeful, Leo Lithium (ASX: LLL), was supposed to deliver yesterday’s lithium close.
Alas, licensing complications with the Mali government have forced Leo’s shares into trading suspension – and so the company was ably replaced as a presenter by explorer Encounter Resources (ASX: ENT).Leo won’t like hearing this but sometimes high operating costs in Australia (particularly in Western Australia) are more than offset by the sovereign certainty of owning mining assets Down Under. It was a point sort of made by South Australian uranium play Boss Energy (ASX: BOE) yesterday.In between yesterday’s lithium onslaught, Chalice Mining (ASX: CHN) reminded delegates of a lack of major exploration success – “the fate of decarbonisation rests on the explorers who must find the green metals; the big discoveries are rare”, said the finder of the Julimar nickel-copper-PGE deposit on the outskirts of Perth.Chalice, which is looking for someone to invest in it or the project, is correct in highlighting a dearth of significant exploration success, which summarises the current state of the industry and the mood inside and in front of the Diggers marquee as delegates were scratching their sweaty heads trying to think of the next excitement story.Agnico Eagle Mines, Greatland, Gold Road Resources (ASX: GOR) and Gold Fields added some bullion to the day’s presentation program, with Gold Road the best example of the value that can come from an intelligent and successful exploration push.Its Gruyere discovery – one of only a handful of world-class gold discoveries in Australia since the turn of the millennium – has enabled Gold Road to become a regular dividend payer, much to shareholders’ delight.Few companies have the brownfields exploration potential of Northern Star Resources (ASX: NST), which has an exploration budget this year of $150 million – including $41 million across the KCGM operation at the top end of (and below) Hannan Street.So in the absence of organic growth, the chatter has turned to the M&A circus – particularly once Newmont completes its takeover of Newcrest Mining (ASX: NCM). Many expect Newmont to offload Newcrest’s Telfer asset – maybe Greatland is the logical buyer.On the people front, AFL champions Chris Judd and John Worsfold were doing the Diggers rounds, gold champion turned Develop (ASX: DVP) copper-zinc-lithium aspirant Bill Beament was a noticeable absentee, as was the ACL-damaged Marcus Freeman of major sponsor Canaccord Genuity and Chamber of Minerals and Energy WA boss Rebecca Tomkinson.The Perth Mint booth is leading the popular-stand contest, not least because of the fun watching delegates try to lift the 1000-ounce silver bar. Give it a go today.And how good was it to watch the Matildas, in the marquee as part of the Clarke Energy Cocktail Party, take Denmark to the cleaners?
The likes of Pilbara Minerals (digger) and Andrew Forrest’s Wyloo Metals (dealer) are hot favourites to take out their categories. Dreadnought Resources (ASX: DRE) and Azure Minerals (ASX: AZS) are a chance for the emerging award and the conference organisers will surely honour the late but great Peter Bradford.First, though, attention turns to the Gold Industry Group breakfast in the Kalgoorlie Town Hall this morning for a discussion about reshaping the workplace of tomorrow. See you there.
