90pc of miners are expecting higher revenue in coming years
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Nine out of ten mining and metals CEOs expect to grow their company’s revenue over the short and medium term, a new survey by consultancy PwC has found.
The report — which surveyed mining and metals bosses around the world — reflectes growing positive sentiment across the global resources sector.
“After years of depressed commodity prices, CEOs of mining and metal companies are feeling positive again,” the report said.
“Global growth is on the upswing, and so is demand for [mining] products and services. At the same time, companies are reaping the rewards of the last few years of cost savings and efficiency improvements.”
The report surveyed 53 chief executives from mining and metal companies.
Half of resources bosses were planning to hire more staff in the coming year on the back of expected improvement in global economic growth.
The majority of mining execs (83 per cent) were focused on organic growth as the best way to increase profit.
“A focus on organic growth – working existing assets and projects harder and smarter – makes sense,” PwC noted in the report.
“Given the current low appetite for expansive capital expenditure from boards and shareholders following the M&A [merger and acqusition] boom, miners have few available options but to find smarter ways to work their mines and to deliver brownfield [existing] projects.”
About two-thirds were focused on cost-cutting, 45 per cent on joint ventures and 40 per cent on mergers or acqusitions.
Higher taxes were the biggest concern, followed geopolitical uncertainty, volatile commodity prices and over-regulation.