The business intelligence service tracked a 180% jump in mining sector funding over the three months to December to $US6.2 billion ($A6.9 billion), despite lower drilling activity.

In its latest State of the Market report, SNL said the funds raised and resultant improvement in cash holdings among producers suggested a more bullish time might lie ahead.

“With excess capacity for the supply of many metals, the mining industry might not benefit to the same extent as the general economy,” the report said.

“However, the sector’s turn will come and, in the meantime, there is significant value to be had from the acquisition of development properties.”

However, a modest slowdown in China’s growth rate was flagged as an uncertainty factor, with the Asian giant growing at 7.7% over the December quarter versus 7.8% in the previous three months on weakened industrial output, fixed investment and retail spending.

In the longer term, SNL reports director Chris Hinde assessed the issue as a general positive for mining companies.

“For all the somewhat gloomy sentiment about the current rates of economic growth, long-term metals consumption is linked fundamentally to per capita wealth and population – and both are growing,” he said.

“The world is still getting richer.

“Within a couple of decades, a world that is predominantly poor will be mostly middle class and consuming more metal.

“This augurs well for the long-term future of the industry as a whole.”

SNL related last year’s falling metal prices, cost cutting and dried up funding to a sharp decline in mergers and acquisitions in the March quarter, followed in the June period by more price falls and collapsed financing.

The September quarter signalled a return of some investor confidence to the sector.

“These broad trends have continued in the three months to end-December 2013,” Hinde said.

“There is increased optimism but the exploration scene remains depressed.

“Drilling activity fell again, except for copper, with an associated decline in new resources and reserves announced during the quarter.”

In mid-January the International Monetary Fund warned the world’s leading economies against withdrawing their financial stimulus too soon and expressed concern about the threat of deflation in the eurozone.