5/27/2023 0 Comments Fission energy![]() ![]() So far this year, the industry's earnings estimate for the current year has gone down 32%.īefore we present a few stocks that you may want to consider for your portfolio, let's look at the industry's recent stock-market performance and its valuation picture. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually losing confidence in this group's earnings growth potential. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. The Zacks Mining - Non Ferrous industry, a 13-stock group within the broader Zacks Basic Materials Sector, currently carries a Zacks Industry Rank #243, which places it in the bottom 4% of 256 Zacks industries. The group's Zacks Industry Rank, basically the average of the Zacks Rank of all the member stocks, indicates gloomy prospects in the near term. Zacks Industry Rank Indicates Weak Prospects ![]() This, in turn, will favor the industry in the long haul. While demand remains strong, there will be an eventual deficit in metal supply, leading to a situation that will bolster metal prices. Infrastructure Investment and Jobs Act will require a huge amount of non-ferrous metals. The plan to overhaul and upgrade the nation's infrastructure and promote green policies per the U.S. Demand for non-ferrous metals will remain high in the future given their wide usage in primary sectors, including transportation, electricity, construction, telecommunication, energy, information technology and materials. Development projects are inherently risky and capital-intensive. Impending Demand and Supply Imbalance: The industry players are currently dealing with depleting resources, declining supply in old mines and lack of new mines. Miners are now committed to cost-reduction strategies and digital innovation to drive operating efficiencies. The industry participants are opting for alternate energy sources to minimize fuel-price volatility and secure supply. Since the industry cannot control the prices of its products, it focuses on improving sales volume, increasing operating cash flow and lowering unit net cash costs. The industry players are grappling with escalating production costs, including electricity, water and materials as well as higher freight expenses and supply-chain issues. Labor-related disputes can be damaging to production and revenues. However, Uranium prices have gained owing to rising demand for clean energy.Ĭost Control & Innovation to Increase Efficiency: The industry has been facing a shortage of skilled workforce to date, which hiked wages. services sector report reinforced expectations that the Federal Reserve will likely raise interest rates. Gold prices also felt the pressure of a rallying dollar and Treasury yields as a robust U.S. Silver prices have also been negatively impacted this year so far, weighed down by the stronger US dollar, rising interest rates and sluggish growth. Zinc prices also bore the brunt of worries about weak demand as COVID-19 lockdowns in China stoked concerns over a global recession. A slowdown in China's economy and credit tightening may reduce spending on infrastructure and construction projects in the country that might further shrink demand for copper. ![]() ![]() Prices were decreased by the Russia-Ukraine situation, a spike in energy costs and low global inventories. What's Shaping the Future of Mining-Non Ferrous Industry?įears of an Economic Slowdown Weighing on Commodity Prices: Copper prices declined lately amid the uncertainties surrounding the global economy as new coronavirus restrictions in China dwindled demand for the red metal, hurting prices. They strive to upgrade and improve the quality of their existing assets, internally and through acquisitions. The miners continually search for opportunities to grow their reserves and resources through targeted near-mine exploration and business development. Significant exploration and development to evaluate the size of the deposit followed by assessment of ways to extract and process the ore efficiently, safely and responsibly precede actual mining. Mining is a long, complex and capital-intensive process. These metals are utilized by various industries including aerospace, automotive, packaging, construction, machinery, electronics, transportation, jewelry, chemical and nuclear energy. The Zacks Mining - Non Ferrous industry comprises companies that produce non-ferrous metals, including copper, gold, silver, cobalt, molybdenum, zinc, aluminum and uranium. These are poised to gain from their endeavors to build reserves and control costs while investing in technology and improving production efficiency. Against this backdrop, we suggest keeping a close eye on companies like Freeport-McMoRan Inc. ![]()
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