Top Miners' EBITDA to Take 6% Hit in 2020

SEATTLE (Scrap Monster): The PwC Mine 2020 Report observed that the top 40 mining companies have registered better performance when compared with companies in other sectors. The mining sector has been able to keep operating through the recent crisis times. In certain aspects, the sector is well-positioned in the wake of the crisis.

The forecast indicates that these companies are likely to take a 6% hit to EBITDA. The longer term impacts of the ongoing disruptions due to Covid-19 pandemic remain uncertain, it said. The capital expenditures are likely to slow down by at least 20% in 2020. At the same time, miners will have to boost investments in local communities.

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The increased economic uncertainties may likely result in less mega-deals in mining sector. However, the current conditions offer great opportunities for the top 40 companies to capitalize on small-ticket acquisitions in local markets. Incidentally, the International Monetary Fund (IMF) has predicted that global economy is likely to contract by 3% during the current year.

The PwC report foresees moderate impact on top 40 mining companies due to volatility in commodity prices and production. The share prices of these companies have shown quick recovery, even during the turbulent times.