Value Creation in Mining 2021: Emerging from a Rocky Decade

In the first place, they don’t have the luxury of choosing a site of operations: the ore is where it is. [...]mining is especially sensitive to the vicissitudes of the global market, local markets, government administrations, political activism, environmental pressures, and shifting investor sentime...

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Bibliographic Details
Published inBCG Insights
Main Authors Vogt, Thomas, Costa, Agustín, Schmidt, Marc, Konrad von Szczepanski
Format Web Resource
LanguageEnglish
Published Boston Boston Consulting Group Boston, MA 29.06.2021
Subjects
Commodities
Copper
Coronaviruses
COVID-19
Decades
Economic crisis
Economic development
GDP
Gross Domestic Product
International finance
Investments
Iron compounds
Mining industry
Pandemics
Prices
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Summary:In the first place, they don’t have the luxury of choosing a site of operations: the ore is where it is. [...]mining is especially sensitive to the vicissitudes of the global market, local markets, government administrations, political activism, environmental pressures, and shifting investor sentiment. Since 2010, the industry has averaged negative median returns, failing to generate value for its investors. The enormous momentum toward electrification—particularly in connection with electric vehicles and storage systems of all types—has positive implications for copper, nickel, cobalt, lithium, and more. Smaller companies are also successfully challenging larger incumbents, as exemplified by the meteoric growth of Northern Star Resources and Saracen Mineral Holdings, whose merger (completed in February 2021) has created a new entrant among the ten largest gold companies in the world.