Basic Materials Sector

In recent years, the Basic Materials companies have benefited from what some have referred to as a “technology-enabled” transformation of the sector. 

Planned transitions from human-operated equipment to robotic and semi-autonomous systems have resulted in less workplace safety incidents, while improving asset utilization and efficiency.  The emergence of “smart” mining techniques, including the use of telematics, have allowed operators to assess the performance of their assets in real-time.

While improved operating efficiencies have translated into improved financial performance for many companies in the sector, management teams continue to face considerable macro headwinds.  Ongoing commodity price volatility, the cost of regulatory oversight and intervention; geopolitical uncertainty, and protectionist trade policies remain key issues that remain top-of-mind for many investors.  

In a sector where constant change is the only certainty, we help our clients build compelling narratives that educate and inform the audiences that matter. We are well acquainted with the institutional investors and sell-side analysts covering the space, along with the myriad legislative, regulatory and competitive factors that have the potential to impact valuation.