Mining Magazine February 2019 | Page 81

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Maximising Portfolio Returns

Capital allocation lies at the core of corporate strategy . Future returns will only be competitive in the long term if the right decisions over capital are made now . In order to truly transform portfolios , and provide marketleading shareholder returns , the mining sector must look across all strands of capital allocation , which increasingly involves the need to invest in transformative technologies . EY found that with relatively few greenfield projects providing low-risk investment opportunities , there is an increasing desire to consider acquisitions . Supply challenges across a few commodities are just over the horizon as project pipelines have shrunk significantly . EY argue disruption is inevitable and those with thoughtful capital allocation to digital and innovation will become the innovative , predictive as well as higher margin-generating mines and metals operations .
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