Positive indicators in the global mining and minerals landscape show that the market is coming off the bottom writes Wray Carvelas, CEO of DRA Global.
Worldwide investment appetite and an increase in activity is returning to this sector as investors look to unlock the untapped potential offerings. Despite a possible upturn in the industry, a reduction in worldwide exploration spending and more stability predicted moving forward, investors remain prudent.
Regrettably when faced with the overwhelming pressure to secure funding, many organisations make false promises that they simply are not able to deliver on. Shareholder expectation ultimately dictates production, budget and schedule predictions, which does not sit well with investors in today’s markets.
Potential, fuelled by inexperience, has the power to bend reality, no matter how unrealistic, and once agreed to, is treated as fact. The drive to under-promise and over-deliver typically yields the opposite for both. This, in turn, lowers confidence levels and decreases the propensity for future investment.
Studies in conceptual, pre-feasibility and definitive feasibility studies map a project to a positive outcome. Technological advancements and hands-on experience determine and mitigate the risks and overshadow the ever-present uncertainty lurking in all business.
Human merits such as the aptitude to listen and the ability to say an informed ‘no’ makes the difference to the bottom line. Navigating climates; leadership; equipment; systems and socio-economic factors is very different to the practical application thereof. There is no algorithm to guide these decisions.
Across the world, mining companies are shifting their strategies to adopt new business and operating models that include new technologies at a more rapid pace than ever before. This fundamental shift has the ability to transform the outcome, and will ultimately unlock the potential and new benefits found in the sector.
The global environment is volatile and the industry fluctuates at a whim, which in turn populates investor caution. Realistic expectations, rational approaches and sound reason actioned by strong leadership and sound collaboration is what makes these investors hungry and grows their appetite, too.