The resources sector in 2025 was characterised by high liquidity and strong investor appetite. In contrast to the broader IPO market, the overall equity market for resources companies has been red hot, with a number of instances of companies launching capital raises and closing the book just an hour later due to overwhelming demand. For resources companies, it has been a good time to go to market.
Gold companies in particular have been performing exceptionally well. The share price of these companies has been supported by strong demand for the precious metal.
This supply-demand imbalance has been reflected in the spot price. In March the gold price moved through the US$3,000 an ounce mark without resistance and also moved easily through US$4,000 in October. It has now stabilised just over this level, closing just over US$4,300 at 31 December 2025.
Gold is traditionally seen as a safe haven, and there is no doubt that the current global landscape is fraught. Geopolitical uncertainty continues to run rampant, driven by a number of factors including the political environment surrounding the Trump administration, the ongoing war between Russia and Ukraine, and the conflict in Gaza. These factors have established gold as an important hedge for sticky inflation.
The geopolitical landscape is also helping drive demand for industrial materials such as rare earths and critical minerals.
This trend has become particularly noticeable as countries seek to develop a supply chain that is independent from China. Consequently, rare earths projects have been given a significant “shot in the arm,” with capital flowing toward projects that offer supply security.
The broader commodities market, however, presents a more complex picture. Copper has been doing reasonably well. Lithium has had a bit of a recovery after previous volatility, although nickel is still struggling to find momentum. Iron ore, the stalwart of the sector, has remained stable.
For companies in the sector, the revenue numbers are good news but operational challenges remain. We are starting to see inflation creeping into the cost structure for miners. So far, this hasn’t really mattered, as the increasing price achieved for the metals has offset the rising costs. However, this may start to change. If commodity prices peak while inflation continues to impact the cost base, margins could come under pressure.
Artificial intelligence (AI) is also playing a significant role in shaping the future of the resources sector.
AI, and the associated data centres, are enormously energy-hungry, and the market is now facing the challenge of where this energy will come from. The immediate need is for stable, baseload power, which currently relies heavily on coal and gas.
Looking ahead, the uranium price is rising, although the current spot price is not yet reflective of the economics required for long-term projects. It is likely there will be more uranium IPOs in 2026 and into 2027 as the nuclear sector positions itself to meet this new demand.
Overall, the outlook for the next 12 months for the resources sector is one of optimism and activity. Exploration expenditure has improved during 2025 and should continue in 2026. With a supportive equities market and clear drivers of demand, the resources sector appears set for a period of sustained activity. This will likely flow into more IPOs in 2026, following on from a slight resurgence in IPO activity in the second half of 2025.
This article was first published in the 2026 IPO Watch Australia Report.