In an international report released this week by The Mining Recruitment Group, 140 mining executives from around the world revealed their outlook on the strength and viability of the sector over the short and long terms in addition to the current management strategies being employed in the wake of the market turmoil.
Only 22% of respondents thought that the mining sector would perform better in the second half of 2012 as compared to the first, with another 41% suggesting it will likely perform worse. When comparing the next 12 months to the last, it doesn't get much better with 63% of executives operating under the impression that the sector will perform the same as it has or get worse.
Respondents felt bullish about the prospects for their own businesses for the remainder of 2012. Sixty-three per cent of executives think that their company is well positioned to outperform the market as a whole. Only 3% felt their own businesses would have a worse time in the year ahead.
Andrew Pollard, president of Mining Recruitment, said, "The report provides evidence in support of the view that the industry is in the midst of an extremely challenging year. Though the short term sentiment certainly proves to be pretty bleak, the most important and yet surprising finding is the level of optimism of those on the inside track and their confidence in the regained strength of the industry in the coming years."
Though the short term outlook is quite meager, there was a marked difference on their perspective over a three year period. 82% of respondents are bullish as to the strength of the industry over this time frame, whereas only 5% are bearish at any degree. The remaining 14% had a neutral view.
When asked to predict when market conditions would take a sustained turn for the better, 56% of executives surveyed thought it take until the Q1 2013 or beyond to develop any sort of real traction. Many (38%) are optimistic that Q4 2012 will be when things start to turn around with. Only 5% thought this would happen before the fourth quarter came around.
Key report findings:
About The Mining Recruitment Group
Established in 2006 and based in Vancouver, The Mining Recruitment Group (MiningRecruitmentGroup.com) is a leader in executive search for emerging junior and mid-cap mining companies. To request a copy of the report with detailed findings, email [email protected]