NAI Interactive is proud to present the Global Resource Investment Guide 2017. Since 2012, the global mining industry entered the cyclical adjustment period due to the gloomy global economy. Almost every major commodity in the world has been in severe bear market. However, the downturn of the commodities market sparked innovation as mining companies became much more efficient in their operations.
NAI has put together the Global Resource Investment Guide to help readers understand and recognize the investment opportunities in the current mining and resources market. The resource guide highlights topics such as the rebirth of the resources sector, investment strategies for mining and energy, top resource projects and materials around the globe, and more. Throughout the next couple of weeks, we will be publishing excerpts to introduce you to the contents of the Global Resource Investment Guide 2017.
Taken from the article: “Learning from the Decline of the Last Mining Supercycle”
The year 2015 marked the time when the marketplace began to realize that the biggest boom in mining history – known as the Mining Supercycle, which prevailed from 2001-2011 – had ended. Some, however, continued to remain in denial and maintained their belief that metal prices will be revived. The once invincible mining sector that benefited from the strong Chinese demand for commodities in the decade to 2011 had significantly slowed due to the weaker economic growth in China as well as the meltdown in its stock market.
During the Mining Supercycle, mainstream global metals prices soared and miners rushed to squeeze more from existing mines as well as to bring more mines to production in order to take advantage of the price boom. With more demand for goods and services in the mining sector (from materials to tools and equipment, labour, energy and engineering), capital costs and operating costs had also significantly increased as a result.
Development delays, cost underestimation, debt defaults, poor pre-construction planning and funding shortfalls were among some of the challenges faced by the companies discussed in more detail below. Coming out of the Mining Supercycle, each of these companies have their own stories that can serve as invaluable lessons to mining companies as they face a more difficult environment while awaiting the next market upturn…
* At a value of CAD$50, the guide will be available for free download for a limited time. The offer ends after September 8th, 2017.
