- Published: Friday, 21 February 2014 02:07
- Written by Steve Fiscor
In the last year, executives at mining companies have adopted a new catch phrase: “A Lack of Clarity.” This phrase supplanted the previous challenge of “Operating in Uncertain Times.” There are very noticeable, common trends taking place industry-wide. Mining companies are gravitating toward plans that embrace Tier 1 assets, optimizing existing production processes at those operations, and selling non-core assets. The honeymoon period for many of these executives is about to expire and they find themselves in an awkward position. They have to explain a new strategy to shareholders who are unhappy about the company’s stock performance while at the same time they are selling off mining operations—sometimes at a steep discounts over what the company paid only a few years ago. When shareholders and analysts ask about the outlook? The answer more recently has revolved around a lack of clarity, as if the future was previously predictable.