Ernst & Young says that after surviving tremendous price volatility over the past 18 months or so, mining and metals companies across Canada are just now starting to apply the lessons from change to prepare for an upturn in the coming months.
“A new performance agenda has emerged for Canadian mining and metals companies,” says Tom Whelan, Leader of Ernst & Young’s Canadian Mining & Metals practice division. “Right now, industry leaders are focused primarily on optimizing capital, establishing operational flexibility and reassessing their ability to manage risk.”
In a recently published report entitled Lessons from Change, E&Y examines what companies have learned as a result of the financial crisis and how they’re applying this new knowledge to the recovery ahead. The report outlines the fact that mining and metals companies are no longer making big deals or bringing on new production without careful consideration.
“The mining and metals landscape has changed faster and more dramatically than anyone thought possible, and market unpredictability is quickly becoming the biggest challenge mining and metals companies face,” said Whelan. “As a result, companies need to be increasingly nimble when it comes to capital.”