The 49th annual three day conference of the New Zealand branch of the Australian Institute of Mining and Metallurgy attracted more than 260 delegates to Dunedin, its first return to the city in more than a decade.
Mine investment is at all time lows with many minor and some major companies facing administration or receivership. Commodities are down 50% 70% and the economies of China, Australia and New Zealand are all under increasing downward pressure.
It was not all bad news, but good news was mainly limited to small companies' increasing volumes or exploration proposals.
None of the positives come close to replacing the hundreds of mining jobs lost in the South Island during the past two years, at Solid Energy and Oceana Gold.
Expanding exploration budgets were the exception, not the norm. Campbell Macpherson director Tony Haworth said with the commodities downturn now in its fifth year, the conference theme could well have been ''toughing it out''.
With gold prices down 60% and coal prices about 75% down, he expected economic data for the mining sector to continue its downward trend, once calendar year 2015 is analysed.
''There's no sign of recovery yet ... it has become very challenging for stock prices and it's hard to find equity,'' Mr Haworth said. Of commodity and stock prices and growth in New Zealand's economy, he said: ''The past 12 months have been a train wreck''.
Mr Haworth said global exploration expenditure had halved in the past two years to $US11billion ($NZ17.02billion), declining 26% on 2014 alone, while equity raising was down 15% for 2014, at $US230billion worldwide.
Equity funding for the sector in New Zealand had plunged from $50million in 2010 to $15million this year, while New Zealand's global ranking as a host country for miners had declined for the first time in four years, plunging 19 places to 35th, out of 100.
That was possibly because of the rejection of two offshore seabed mining proposals and public sentiment over the secrecy surrounding the Trans Pacific Partnership talks.
''Canada, the US and Australia have all the exploration attractiveness, while the Oceania group [of Pacific nations] is lagging behind,'' Mr Haworth said.
On the ''upside'' for the sector was the attraction of gold as an investment, in New Zealand dollar terms, the weakening New Zealand dollar, the availability of exploration ground and a ''supportive government'' paying for aeromagnetic flights, most recently in the West Coast, and in Otago and Southland later in the year.
''When people do come to New Zealand looking, they're going to be ahead having the [new] data to use,'' he said.
Alan Broome, chairman emeritus of Austmine and also chairman of CRL Energy, and a former eight year director at Solid Energy, said the sector faced the ''perfect storm''. Decreasing commodity prices and slackening demand was prompting loss of employment and less capital expenditure by companies.
In Australia, the downturn had prompted $A155billion ($NZ171.2billion) in projects to be postponed, he said.
''The value in the number of deals done was 50% down on 2014,'' Mr Broome said, highlighting capital expenditure, compared with 2012, was down 63% on coal, 50% down on iron ore, 27% on gold and 33% on copper.
''There needs to be a big rethink to attract capital ... to rejuvenate the mining sector with smarter mining.''
Innovative technology had to be employed in exploration, the tools used for mining, automation and ore processing, he said. The mining spend on innovative technology was 90% less than in the oil and gas sector.
Craigs Investment Partners broker Peter McIntyre highlighted the ''scarcity of capital'' available to the sector, outlining why the sector was becoming unattractive to investors.
''Socially responsible investing is getting legs and will place pressure on how companies are funded. It has the potential to undermine the [resources] industry for decades ahead,'' Mr McIntyre said.
A key point was the sector's volatility, when most investors wanted sustainable dividends, and also a move by younger investors away from fossil fuels and the mining sector.
He said large pensions and university funds were starting to quit investment in the sector, citing the Dunedin City Council's recent decision to exit holdings associated with fossil fuels.
The sector was facing ''credibility issues'' with investors on several fronts, and chief executives and their boards had to put in better performances to attract investment, he said.
While Craigs was still recommending commodity stocks to investors, given many were at 20 year lows, share price and commodity volatility was causing ''some reluctance''.
''The best time to get involved is when commodities have been beaten up, not when they are performing at their best,'' he said.
