RPT-Fitch: metals producers and bulk miners managing to slower growth

Mon Dec 16, 2013 4:06pm EST

Related Topics

Link to Fitch Ratings' Report: 2014 Outlook: Metals and Mining (Meeting the 
Challenges)NEW YORK, December 16 (Fitch) Fitch Ratings' expects the benefits of two years 
focus on costs and capital discipline to be more apparent once the commodity 
markets come into better balance. 

Heavy investment in prior periods has resulted in a wave of new capacity at a 
time when growth from emerging economies has slowed and industrialized demand 
remains below pre-crisis levels.

Cost benefits from currency, reduced maintenance expenditures, and 
debottlenecking allows for higher production despite lower commodity costs. In 
addition, some producers are running harder to cover high financial expenses or 
transportation take-or pay contracts which act as fixed costs.

Fitch expects this period of consolidation to last at least through 2014 but for
financial profiles to improve.

The full report '2014 Outlook: Metals and Mining,' covers earnings and cash flow
drivers for the space and is available on the Fitch Ratings' website 
'www.fitchratings.com.'

Contact: 

Monica Bonar

Senior Director

212-908-0579

Fitch Ratings, Inc.

One State Street Plaza

New York, NY 10004

Sean T. Sexton

Managing Director

+1-312-368-3130

Media Relations: Brian Bertsch, New York, Tel: +1 212-908-0549, Email: 
brian.bertsch@fitchratings.com.

Additional information is available at 'www.fitchratings.com'.

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. 
PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: 
here. IN ADDITION, RATING 
DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S 
PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND 
METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF 
CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE 
AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF 
CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE 
SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS 
SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED 
ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH 
WEBSITE.
FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.