There is a high level of uncertainty across the globe as markets falter and the threat of geopolitical issues loom. With the Chinese economy at risk of a crash; the continued impasse in the oil sector; an uncertain future for the EU; and implications of ongoing conflict in the Middle East, the macro economy looks set to present challenges for economic growth in a number of sectors.
The Deloitte RS Sector Outlook Series will bring to the surface the sector challenges facing both UK and European companies over 2016/2017. Working with Deloitte industry experts, we will be identifying which sectors face the biggest challenges and what risks and opportunities these present for you, our clients. We will also identify key characteristics and indicators to help you assess your investments.
In this first edition of Deloitte’s RS Sector Outlook Series, we kick off with our views and insights on the Mining sector.
The four biggest challenges facing mining in 2016/2017
Market oversupply as big companies continue to produce to drive out competitors
Efficiency and cost cutting – smaller miners will struggle to cut both costs and investments while still remaining viable
Stakeholder demands – there will be increasing difficulty balancing stakeholder demands from shareholders, governments and labourers
Financial challenges – high debt levels are placing companies under greater pressure at a time when they need support the most
Predictions for the mining sector
Short to medium term pressure across the sector
Consolidation as companies with strong balance sheets take advantage of market pressure on smaller operator
Shift in consumer demand as India becomes a more important player.
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Source: Deloitte
