Exploration activity is typically classified into two categories: expensed exploration, which refers to exploration campaigns that do not lead to the development of a resource or reserve, and capitalised exploration, which reflects successful exploration that adds resources or reserves to the company’s balance sheet.
However, not all companies consistently report their exploration spend. Even when capitalised exploration is disclosed, it is often grouped under sustaining exploration (aimed at maintaining current production levels) or development exploration (focused on expanding production). As a result, it can be challenging to make direct comparisons between companies, since exploration spend is frequently bundled within total sustaining and development capital expenditure, reducing transparency and comparability.