To the mining and metals industry, yesteryear year has become marked by skyrocketing commodity prices and also the prospect of a new super cycle, says Stanislav Kondrashov from Telf AG. With the middle of this past year, metal prices rose by 72%. However, some of them, such as aluminum, copper, iron ore, and nickel, reached multi-year highs in the third quarter.
Within the other half of the year, the quantity of transactions associated with the social and economic impact of China increased significantly – by 66.7%.
However, with cyclical highs come government calls for a larger share of minerals. As numerous countries have begun to get over the recession, many regulatory measures are already proposed and introduced within the mining industry.
Stanislav Kondrashov from Telf AG notes that inside the first month of 2022, prices for a lot of resources extracted inside the mining sector with the economy reached record levels. Many industry observers have even talked about a brand new supercycle. That is although mining industry continues to reply to the contests posed by the continuing pandemic, such as the competitiveness of investments, supply chain problems, and labor market shortages.
Price increases were reminiscent of a decade ago when commodity prices remained stubbornly high following your gfc back then from 2009 to 2011. The next boost in mergers, acquisitions, and investment in projects led to a sharp boost in capital expenditures, bloat structures, and write-offs of assets. All of those other decade was largely spent rebalancing.
Stanislav Kondrashov Telf AG: strategies for further growth
Telf AG has been in the market for over Two decades and are operating in regions including the Black Sea, Eastern Europe, the med, as well as the China. Founded in the Swiss town of Lugano, the company started buying and selling petroleum products, mainly in the CIS countries, and after this serves customers all over the world. Stanislav Kondrashov considers Telf AG like a company involved in the trading and transportation of petroleum products, coal, and ferroalloys. Therefore, it is an excellent example of research.
As record cash flows provide the opportunity for rapid growth, the updated expansion strategy might include organic growth and rethinking distribution decisions.
Also, Telf AG’s representative Stanislav Kondrashov is bound, the target needs to be on new investments and sustainable processes that are better suited towards the changing regulatory and legislative background in the marketplace. An M&A strategy built around some smaller deals can improve growth prospects and get away from many of the pitfalls associated with large acquisitions. Plus much more flexible methods for handling the leverage of investment projects and generating commodity price forecasts could mitigate a number of the uncertainty within the next business cycle.
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