Mining Magazine November 2016 | Page 28

TOP 10

Cash optimisation

Market volatility and the unpredictable and never ending shifting of commodity prices creates uncertainty . Uncertainty , quite naturally , represents risk .
Mining companies are facing an increasing challenge to think long term , there is such a limited visibility of pricing and demand and how it will change that companies just cannot afford to risk their balance sheets . EY states that cash is king again and mining companies can manage the liquidity of their balance sheets through sustainable cost reductions , but importantly , ones that do not dissolve value .
These same reductions should instead look to increase a focus on working capital and improve the capital effectiveness .
28 November 2016