TEN BUSINESS RISKS

Commodity prices , whether strong or weak , can often dictate a mining company ’ s outlook on the future . EY states as much , mining companies very often think pro-cyclical short term . But it is important for companies to remember to think of the future and future growth . It ’ s not enough to survive , growth is what will make a company stand tall above competitors .

For that to happen , companies must understand the options available to them . Understand the market , invest ( not literally ) in time spent watching and analysing the market so that if an opportunity arises , a mining company is in prime position to capitalise on it and ultimately boost long-term shareholder value .

EY recognises that this may very well include downsizing portfolios in order to realise capital , but it is important to remember that this will effectively allow a company to use that capital to support future growth opportunities .

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