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Industry Trend Analysis - Iron Ore Miners: Struggles Ahead, Especially Juniors - JUNE 2014

The downtrend in the Bloomberg Iron Ore Mining Index will persist over the coming quarters as mining equities remain under pressure from lower iron ore prices compared to the boom years. Junior miners will struggle to survive due to funding constraints, while more Chinese projects become economically unviable at prices below USD120/tonne. Indian miners will also grapple with problems surroundin...

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Industry Trend Analysis - Rising Auto Industry Demand To Shake Up Graphite Market - MAY 2014

Firstly, Tesla's upcoming gigafactory in 2017, as well as the bigger push by EV manufacturers to increase sales, will increase demand for graphite (an essential mineral for batteries) over the coming years. Secondly, with China clamping down on graphite mining operations within the country, we see greater opportunities for producers to open mines elsewhere in the world. Lastly, we see natural...

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Global Industry Overview - Tin: No Boom Years Ahead - APR 2014

Global tin mine production will only expand modestly in the coming years on the back of tighter environmental regulations, falling ore grades and higher production costs. China will lead the bulk of the output increase, while other traditional players such as Indonesia and Australia continue to make a modest contribution. The key downside risk to our production forecast stems from the fact that...

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Industry Trend Analysis - Mining M&A To See Upside In Quarters Ahead - MAR 2014

We believe that 2014 is likely to see increased M&A deal activity in the mining sector after the declines of the past few years. We do not expect a wholesale return to the headier times of last decade, and see most mining firms seeking organic growth through brownfield expansion rather than through M&A activity. Still, recently announced pending deals bolster our view that write downs...

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Industry Trend Analysis - Top Firms Signal Continued Capex Weakness - JAN 2014

The latest announcements by Rio Tinto and Vale regarding cutbacks in capital expenditure (capex) in 2014 further reaffirm our view that the mining industry will be beset by austerity in the coming quarters. Given recent industrial metal price weakness and uncertainty over the sustainability of Chinese growth, we expect more miners to announce similar cutbacks. Our forecast for falling iron ore...

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