Speaking to Kitco News, Smallwood suggested that the situation has impacted the rate of accumulation of precious metals by various companies. According to the executive, inflation has driven the price of commodities higher which is reflected in the prices of metals like copper that are enjoying the high prices. He noted that the inflation situation is creating extra capital margins afforded to higher commodity prices. Consequently, Smallwoods suggests that the inflation situation gives mining industry players room to make capital decisions for the future but in a confident manner. Smallwood added that there would be a higher degree of cost risk in terms of delivering once the decisions have been explored. He stated that the mining industry would likely experience an organic upside with growth and expansion potential amid the potential risks.
Recovering from the pandemic
Furthermore, Smallwood said that the mining industry is also recovering from the coronavirus pandemic that has affected various jurisdictions in varied ways. He singled out underground operations as the most hit by the health crisis that resulted in low productivity. According to Smallwood, the health crisis has hit risk management protocols the hardest, considering productivity is the most impacted. For widescale recovery, Smallwood recommends a need for increased support of communities in areas where mining companies operate. He singled out south America and Africa. [coinbase]
