Recent analysis and reports showcases the issues in Mining Industry. There are differences and a sudden lack of confidence due to the crises which is now generally faced across. The level of confidence is low and is causing losing controls over the cost, capital return structure and the pricing of the commodities which are now leading to make the industry leaders to lose their sleep at night.
Continued with the pressurized economy levels, the mining business and industry had a fall down when it stopped due to the outperformance in the wide level of equity markets. It was seen that the mining stocks had a steep fall of around twenty percent (20 %) in the period of initial 4 months during the year 2013. As a response, the miners are now trying their best to have a rebuilding of the market’s self-assurance. With this kind of response, the expenditure of the capital is getting scaled back, the stumbling block rates are getting increased and the assets that are non-core getting actively disposed. There are various statistics available in the metals and mining market research to conclude a good report and improve the efficiency and productivity session. It is also seen that there is a shift from the process of maximizing the value by actually causing increase in the production volumes and causing maximization of the returns from the present operations. These processes can provide good improvement in the productivity and also in the efficiency.
Now, the question is to regain the confidence of the investor and it will depend how industry actually responds to the increasing costs and various other challenges and one being nationalism as a resource.