KPMG International’s ‘Special Edition’ Metals and Mining Outlook 2016 explores some of the strategies metals and mining executives are executing to improve their growth potential, manage costs and improve efficiency in today’s challenging environment. The report also provides valuable insights and forecasts for key commodities from KPMG’s network of global commodity leaders.
"When growth does return, the market will likely be significantly different than in the past, particularly given the structural changes taking place and the environmental regulations currently being tabled around the world. You can’t just batten down the hatches and wait for the storm to pass. It seems these executives are making the best of a difficult situation."
– Eric Damotte, Global Head of Metals, KPMG International
"Miners will need to improve the way they allocate capital to prioritize cash flow and earnings. The worst thing to do right now is to pour more capital into increasing production."
– Richard Sharman, Global Head of Commodities Trading, KPMG International
Find out what is on the minds of metals and mining executives around the world.
Hoping for growth but cutting costs: Metals execs expect their company to achieve growth but are not optimistic about the state of the economy. Miners are looking to preserve cash flow and stabilize earnings. Everyone is looking for growth while keeping their eyes firmly on costs.
Managing the portfolio: While metals organizations are looking overseas for new growth opportunities, miners are managing their portfolio of assets and products to create the optimal footprint and portfolio for sustainable growth.
Welcoming the robots: One-in-six metals organizations plan to spend more than 10% of revenues on innovation. All signs indicate that the greatest investments will go to technologies that help automate operations, drive efficiencies and improve quality and safety.
Greater transparency needed: Both metals and mining organizations would like greater transparency into their supply chains, but both struggle to achieve the visibility required to made accurate predictions on price and demand.
KPMG's new digital platform