PWC's forecasts only a moderate setback for mining from the COVID-19 pandemic
(Kitco News) - Global audit company Price Waterhouse Copper (PWC) believe the mining industry has weathered the storm of the coronavirus pandemic well and suggest that the industry will only feel a moderate impact. The PWC forecast for 2020 suggests the Top 40 miners will take a modest hit to EBITDA of approximately 6%, this is much better than many other industries.
They say "The Top 40 mining companies are so far weathering the COVID-19 storm mostly unscathed, and certainly better than many other sectors. A remarkable feat, given that global growth is expected to decline in 2020.".
The growth of the EV market is a definite plus point for the market as companies cash in on the lithium boom. looking ahead the report suggests the top should take advantage of their current position of financial stability to revisit their strategies. They should also be considering a collective step up in ESG behaviours.
Looking closer at the numbers, PWC noted revenue for 2020 has increased by 4%. Dividends in the industry are up 25% to $55 billion and market cap in the sector is up 19%.
Overall the sector does look in in pretty good shape. Companies are cashing in on higher commodities prices in key areas like copper and gold. As the world moves out of the pandemic manufacturing and infrastructure projects are likely to pick up and this will mean the good fortunes could continue for some time to come.