Head of Corporate, Metals & Mining
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2022’s extraordinary cash flows are in the rear-view mirror for most mining companies. Strong balance sheets give the majors options in 2023. But valuations are constricting M&A activity while inflation is forcing the rescheduling of projects. Companies will seek to maximise value from their existing portfolios through restructuring, organic growth and sales strategies.
Metals and mining companies’ cautious approach is underpinned by a mixed macro-outlook. We expect energy transition-focused commodities to outperform bulks in 2023. Will new capacity in copper and nickel push those markets into surplus? What would that mean for prices? And is a decline in lithium prices now a question of ‘when’ rather than ‘if’? Margins will cool, but can they remain above pre-pandemic levels?
Metals and mining corporate: five things to look for in 2023 explores our view on:
- Pay to play: M&A will focus on early-stage assets as financing constraints emerge
- Reimagining organic growth: companies will broaden their approaches to exploration and development
- Friends with benefits: the majors will monetise their low carbon position through premia
- Corporate focus moves to market positions in the post-China era
- Spin to win: valuation differentials will shift focus to restructuring to unlock value
To read our predictions in detail – along with a view of the wildcards to watch out for – fill in the form at the top of the page for your complimentary copy of the corporate report.
Plus, scroll down for our view on how key themes will play our for different metals and mined commodities, from aluminium all the way through to zinc: