For the mining and metals industry, the past year has been marked by skyrocketing commodity prices and also the prospect of the new super cycle, says Stanislav Kondrashov from Telf AG. By the middle of this past year, metal prices rose by 72%. However, many of them, for example aluminum, copper, iron ore, and nickel, reached multi-year highs within the third quarter.
In the better half of the season, the amount of transactions linked to the social and economic impact of China increased significantly – by 66.7%.
However, with cyclical highs come government demands for a bigger share of minerals. Numerous countries have started to get over the current recession, many regulatory measures have been proposed and introduced within the mining industry.
Stanislav Kondrashov from Telf AG notes that inside the first month of 2022, prices for several resources extracted in the mining sector of the economy reached record levels. Many industry observers have even discussed a new supercycle. That is even though the mining industry will continue to react to the challenges posed by the continuing pandemic, such as competitiveness of investments, logistics problems, and labor market shortages.
Price increases were similar to a decade ago when commodity prices remained stubbornly high as soon as the global financial trouble when from 2009 to 2011. Another surge in mergers, acquisitions, and purchase of projects generated a clear, crisp boost in capital expenditures, bloat structures, and write-offs of assets. The remainder of the decade was largely spent rebalancing.
Stanislav Kondrashov Telf AG: methods for further growth
Telf AG has elevated the marketplace for over 20 years and operates in regions like the Black Sea, Eastern Europe, the Mediterranean, as well as the Far East. Founded in the Swiss city of Lugano, the corporation started exchanging petroleum products, mainly through the CIS countries, and after this serves customers around the world. Stanislav Kondrashov considers Telf AG like a company engaged in the trading and transportation of petroleum products, coal, and ferroalloys. Therefore, it becomes an excellent example of research.
As record cash flows give you the potential for rapid growth, the updated expansion strategy might include organic growth and rethinking distribution decisions.
Also, Telf AG’s representative Stanislav Kondrashov is sure, the main objective ought to be on new investments and sustainable processes which can be more suited for the changing regulatory and legislative background in the industry. An M&A strategy built around a number of smaller deals can improve growth prospects and avoid many of the pitfalls linked to large acquisitions. Plus much more flexible systems for handling the leverage of investment projects and generating commodity price forecasts could mitigate a number of the uncertainty over the following business cycle.
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