After last year’s drop in mining profits, one might assume that mining industry participants would not be overly optimistic about the future — particularly the short-term future. However, according to a survey by Mining Recruitment Group, that doesn’t seem to be the case.
Of the 232 mining executives surveyed, it seems that only 14 percent aren’t overly optimistic about the next six to 12 months. Mining Recruitment Group notes that this figure is down significantly from the 64 percent that were bearish on the market in 2013.
On the flip side, however, the firm notes that mining executives with a bullish stance on the industry for the next half year to a year jumped up to 35 percent.
Meanwhile, 51 percent of the executives surveyed remain neutral on the short-term industry outlook.
Overall, survey respondents are hopeful on the mining industry through 2017, with 64 percent holding a bullish outlook. In what could possibly indicate a slightly more cautious, once-burned-twice-shy approach, the group highlights that in 2013 the number of executives bullish for the next three years was 2 percent higher.
Given the last year’s poor sector performance, it’s unsurprising that 88 percent of mining executives made significant efforts to curb costs in the midst of the declining sector. Meanwhile, 39 percent reduced overhead costs via salary cuts.
With 53 percent of executives having seen layoffs, only 18 percent of executives expect layoffs in the third quarter of 2014.
As far as financing is concerned, companies operating in British Columbia only managed to raise $221 in 2013, which is down from $3.3 billion. In conclusion, the Mining Recruitment Group indicates that 24 percent of those surveyed are “moderately-to-extremely concerned about the lack of capital investment.”