VANCOUVER, June 21, 2012 /CNW/ - In an international report released this week by The Mining Recruitment
Group Ltd- a Vancouver based executive search firm focused on the
resource industry- 140 mining executives from around the world revealed
their outlook on the strength and viability of the sector over the
short and long-term in addition to the current management strategies
being employed in the wake of the market turmoil.
Andrew Pollard, President of The Mining Recruitment Group Ltd, states
that "The report provides evidence in support of the view that the
Industry is in the midst of an extremely challenging year. Lack of
investment capital and the volatility in commodities prices have
already taken their toll on a great number of companies surveyed,
though apparently, many of the tough decisions have already been made.
Though the short term sentiment certainly proves to be pretty bleak,
the most important and yet surprising finding is the level of optimism
of those on the inside track and their confidence in the regained
strength of the industry in the coming years."
Only 22% of respondents thought that the mining sector would perform
better in the second half of 2012 as compared to the first, with
another 41% suggesting it will likely perform worse. When comparing the
next twelve months to the last, it doesn't get much better with 63% of
executives operating under the impression that the sector will perform
the same as it has or get worse.
Respondents felt bullish about the prospects for their own businesses
for the remainder of 2012. 63% of executives think that their Company
is well positioned to outperform the market as a whole. Only 3% felt
their own businesses would have a worse time in the year ahead.
According to Pollard "This emphasises that senior management teams have
absolute confidence in achieving growth in their companies but have
disparaging views of the competition and the sector in general."
Though the short term outlook is quite meager, there was a marked
difference on their perspective over a three year period. 82% of
respondents are bullish as to the strength of the industry over this
time frame, whereas only 5% are bearish at any degree. The remaining
14% had a neutral view.
When asked to predict when market conditions would take a sustained turn
for the better, 56% of executives surveyed thought it take until the 1st quarter of 2013 or beyond to develop any sort of real traction. Many
however are optimistic that Q4 2012 will be when things start to turn
around with 38% of the vote. Only 5% thought this would happen before
the 4th quarter came around.
Key Report Findings:
When asked about their short term (6-12 month) outlook on the overall
strength of the mining industry only 8% of executives were bullish to
76% of respondents were moderately to extremely concerned over the lack
of investment capital moving into the industry, whereas only 43% were
moderately to extremely concerned with the volatility commodities
prices over the next two years.
In the current landscape, an overwhelming 71% of those polled said that
their companies have made a concerted effort to reduce overhead. Of
those focused on cost savings: 64% have scaled back on marketing and IR
budgets, 32% noted a reduction or elimination of incentive pay, and 80%
have scaled back on their exploration or development plans.
When asked as to how the current conditions have affected their short
term business objectives only 32% indicated current conditions have had
no affect on their plans.
76% of executives indicated that they were not considering any further
layoffs for the remainder of 2012 though with drastic cost cutting
measures having been implemented and fear of the availability of
capital, 60% of respondents do not expect to recruit over the next 6
Of those that are planning to recruit, geologists will be in highest
demand with 71% of those respondents indicating they will have a need.
50% also indicated the need for mining engineers and good executive
leaders don't fall far behind, with 21% of companies polled planning to
make additions to their executive teams.
Only 32% of respondents said that their company is involved in any sort
of succession planning.
Those that took part in this survey were executives from mining
companies of all sizes and stages. Of those polled, 58% came from
companies with market caps below $50m, 14% from companies between
$51M-$250M, and 17% from companies with market caps between $251m-$1b.
11% were made up of executives from $1b+ entities. The lions' share of
responses came from executives at companies that would primarily be
described as explorers, with 54%. Among those remaining, 16% were
primarily at the development stage and 30% were producers. The Report
was sent out and completed between June 1st-June 8th, 2012.
About The Mining Recruitment Group Ltd.
Established in 2006, The Mining Recruitment Group(MRG) is a leader in
executive search for emerging junior and mid-cap mining companies.
Since our inception, we have advised companies ranging in size from $5M
to $20B in market cap and have been involved in successful searches
spanning all senior executive and functional leadership positions
within the mining industry.
To Request a copy of the Report with detailed findings or to schedule an
interview with Andrew Pollard please email email@example.com
SOURCE The Mining Recruitment Group Ltd
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