International credit rating agency Moody’s has announced that it has revised its global outlook for the mining industry to negative from stable, due to the expectations for lower cash flows and profits for the industry’s largest companies next year.
Moody’s stated that the slowing economic growth across the globe is reducing the demand for metals and mining commodities, leading to lower commodity prices and weaker earnings.
In addition, energy and raw materials costs remain high, particularly in Europe, which will also reduce producers’ margins and earnings of producers of base metals.
“EBITDA and prices are decreasing as business and macroeconomic conditions weaken. They will remain higher than in pre-pandemic years but below the record-high levels seen in early 2022,” Barbara Mattos, senior vice-president at Moody’s, said.