Moody's, an international credit rating agency, has announced a revision of the global outlook for the mining industry from stable to negative due to expectations of a decrease in cash flows and profits of the largest companies in the industry next year.
Moody's said the global economic slowdown is reducing demand for metals and commodities, leading to lower commodity prices and lower incomes.
In addition, energy and raw material costs remain high, especially in Europe, which will also reduce producer margins and revenues for non-ferrous metals producers.
“EBITDA and prices are declining as the business and macroeconomic environment worsens. They will remain higher than in pre-pandemic years, but below the record high seen in early 2022,” said Barbara Mattos, senior vice president at Moody’s.
