How will global economic trends impact mining investments?

Predicting short-term and medium-term market trends is difficult. Multiple times, I have observed demand and supply predictions either being completely off the mark or having no meaningful impact on markets. The economic downturn in Japan that led to the metal and copper slump in 1997 was my first real experience of this. Before this, copper prices had surged, seemingly signaling the onset of a bull market with long-term copper prices projected to rise to over $1. However, copper prices plummeted due to the economic challenges faced by Japan. The supercycle eventually arrived, but it didn't start until around 2001. Those 3 to 4 years were among the most challenging times in the sector. In mining, profound changes can occur rapidly.

The first and foremost basic fundamentals of investing is the supply and demand, in economics, relationship between the quantity of a commodity that producers wish to sell at various prices and the quantity that consumers wish to buy. It is the main model of price determination used in economic theory. The price of a commodity is determined by the interaction of supply and demand in a market. The resulting price is referred to as the equilibrium price and represents an agreement between producers and consumers of the good. In equilibrium the quantity of a good supplied by producers equals the quantity demanded by consumers.

Commodity pricing is volatile, especially during changing macro, and political conditions. While external factors like geopolitics, trade policies, and broader market sentiments play their role, it's crucial for operations to focus on internal processes. 1. Embrace strategic flexibility in both short-term and long-term planning can be a game-changer. 2. Control costs to ensure that a mine maintains a better cost profile than its competitors . The focus needs to be on what is controlled within the enterprise, mines can navigate through challenges however it take discipline and foresight in combination with a upper quantile project/ mine.

ESG is not going away Investors have a duty to consider the ESG credentials of any investment as a must have as its investors that can influence more than ever.

There is a need to adopt ESG to mining including exploration projects that will add further costs but, unavoidable as we all move to become sustainable and responsible citizens. Mining can be the solution to climate change!

It should be noted that you can never predict the future but you can apply risk adjusted returns with investment management strategy and always protect the downside as that upside will eventually come…