Gold dominates 65% of Australia’s mining deals: project finance signals for engineers
Reviewed by Joe Ashwell

First reported on Australian Mining Review – News
30 Second Briefing
Gold projects drove 65% of Australia’s FY25 mining deals, with $12.6b of $18.7b in transactions and a 94% surge in gold sector market capitalisation to $64.8b as prices passed $5,341/oz, while overall mid-tier market cap rose 15% to $128.6b. Critical minerals lagged, with market capitalisation down 20% to $37.1b and operating cash flow falling 71% to $0.9b, despite the $13b US–Australia agreement and new tax credits. Of 900 identified critical mineral projects, 124 are “investment-ready” but stalled pre‑FID, most with NPVs clustered around $600m and weak NPV-to-capex ratios, leaving a financing and offtake gap that foreign partners from the US, Japan and Korea are now targeting.
Technical Brief
- PwC’s Aussie Mine Report 2025 analysed 50 Australian mid-tier miners to quantify deal and capital flows.
- Gold-related mining deals in FY25 increased 216% year-on-year in value terms.
- Only seven new “investable” critical minerals projects were added to the pipeline over the past year.
- Of 900 identified critical mineral projects, 124 are classed as “investment-ready” but remain pre‑FID.
- Around one quarter of these 124 projects report proven and probable reserves, limiting bankability.
- Few investment-ready projects disclose NPVs above $1b; many cluster near $600m with NPV:capex <2.
- Long-term, patient capital is reported as scarce for funding definitive feasibility studies and early development.
- Federal physical stockpiles and price support schemes are intended to de-risk price/volume for critical minerals.
- Many projects lack offtake agreements or finance approvals, creating a pronounced “valley” between discovery and production.
- Strategic partners from the US, Japan and Korea are actively targeting Australian critical minerals for defence and energy supply chains.
Our Take
The 94% rise in Australian gold sector market capitalisation alongside record gold prices echoes the World Gold Council’s 2026 outlook in our coverage, which highlights sustained central bank demand as a structural support for gold-focused deal-making.
The 20% fall in critical minerals market capitalisation and 71% drop in operating cash flow sit uncomfortably against the US–Australia critical minerals agreement value of $13b, suggesting policy support is not yet translating into robust project economics for many of the 900 identified projects.
With many critical mineral projects clustering around an NPV of about $600m and few exceeding a 2:1 NPV-to-capex ratio, Australian proponents may need to lean more heavily on downstream partnerships with Japan and Korea to de-risk financing compared with gold projects that are currently attracting most domestic deal flow.
Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.
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