Mining Industry
Industry downturns in the preceding years always have something in common, but what we are facing right now is much different.
While some mining companies will continue operation and some metals will remain in production, others would have to adjust and sacrifice their work to control the spread of the coronavirus. And because of the continuous closures of several mines, the supply of many metals would not be enough for industries. A few of the metals whose production was affected are nickel and uranium.
Aside from production, the price of metals is also one of the main concerns. Since stocks of metals may run out any time soon, metal prices have been rising recently, including uranium and gold.
Gold prices may even rise much higher and profit margins of operating gold mines may see tremendous ascend if stagflation occurs.
Additionally, precious metals, such as gold, are more in demand at present than industrial metals. Since currency is less valuable during this crisis with more money being printed, investors favor precious metals to keep the value in reserve.
Critical metals are also seen important nowadays, even before the Covid-19 pandemic started, especially for technology and renewable energy industries.
Companies who are in great need of these metals would probably utilize a new method that will be of help to them in recovering from this pandemic.
These techniques may be remote-controlled drilling, automation, and being vulnerable to logistics problems. Mines with these acquisition criteria have a high chance of receiving a premium price.
With all the COVID-19 aspects affecting the mining industry, people involved will need to find a way on how to respond to the bigger disruptions, along with the existing demands surrounding them, so they can create a better and more prosperous future in which constant growth is sure to take place.
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