3.0 Commodity Prices
Commodity prices continue to be a key driver of exploration activity in Queensland. Charts 3.1–3.4 illustrate the relationship between global benchmark prices for gold, copper, coal, and LNG, alongside Queensland exploration expenditure for each commodity from 2002-03 through to 2024-25. After an extraordinary period of volatility, 2024-25 saw a rebalancing across most commodities. LNG and coal prices continued to ease back toward longer-term historical levels, while gold, and copper prices remained elevated. This mixed pricing environment translated into uneven exploration expenditure, with gold the only commodity to record an increase in exploration expenditure, while copper, coal, and petroleum all saw declines. It is important to note that expenditure is an imperfect proxy for activity. Rising costs across several factors including drilling services, equipment, and fuel have inflated exploration budgets in recent years, meaning changes in expenditure do not directly translate to proportional changes in drilling or project activity.
Average global gold price (US$/oz) (LHS)
Queensland gold exploration (A$m) (RHS)
120
3,200
Source: Office of the Chief Economist Resources and Energy Quarterly; ABS 5368.0. CHART 3.1 GLOBAL AVERAGE BENCHMARK GOLD PRICES AND QUEENSLAND EXPLORATION SPEND 2002-25
100
2,700
80
2,200
60
1,700
40
1,200
20
700
0
200
Average global gold price (US$/oz) (LHS)
Queensland gold exploration (A$m) (RHS)
3,200
120
In 2024-25, Queensland gold exploration expenditure rose 3% in nominal terms, supported by an extraordinary 36% surge in the global gold price to a record high. The surge reflected strong international demand for gold as a reliable store of value during ongoing global uncertainty, with central banks and investors alike turning to the commodity. The unique combination of monetary and geopolitical pressures reaffirmed gold’s role as a hedge and helped sustain and marginally lift exploration expenditure in Queensland, in contrast to declines across most other commodities. However, given higher operating costs across the sector, the 3% expenditure increase may represent a negligible gain in underlying activity than in previous cycles. 40 60 80 100 1,200 1,700 2,200 2,700
700
20
EXPLORATION SCORECARD 2025
13
200
0
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