Capital Allocators' Playbook: Navigating Long-Term Success in Mining

Sustained business success requires a culture of innovation so companies can retain an advantage over their competitors, and disciplined capital management so they can weather inevitable volatile financial environments and seize opportunities when competitors retreat

In the face of declining orebody grades, a scarcity of new deposits, increasing ESG requirements, uncertain geopolitical relationships, and disruptive technologies, such as automation and AI, innovation remains an essential requirement for mining companies. However, deployment of innovations in the resources industry will, by their nature, require heavy capital investment in new forms of energy supply and storage, new types of equipment and extraction technology and substantial new infrastructure. The level of capital intensity required in the resources industry creates a level of risk which can either lead to businesses avoiding necessary investments in impactful innovation, or, if not managed skillfully, making sub-optimal investments.

Given capital allocation is such an important component in optimising and deploying profits for resources companies, this naturally raises the question as to what can be learnt from those who excel in this endeavour. The following paper therefore aims to draw learnings from successful capital allocators in addressing some of the challenges faced by the resources industry, utilising State of Play’s independent data-driven research to develop deep insights, and Slate Advisory’s experience in strategy.

You can download the full paper below.