The mining market is seeing some rays of hope among an overall slump in production and stock values. For example, Hochschild Mining predicted that its annual output would rise by 70 percent over the next four years.
The company also reported meeting its production target last year, a sign that some are finding ways to profit. According to the Financial Times, the business is forecasting that its work in Peru's Inmaculada mine will help the group reach this goal. Chief executive Ignacio Bustamante said that the company "can now look forward to four years of strong production increases."
In addition to businesses predicting boosts in overall production, the sector is also seeing a historic rise in stocks. Bloomberg Businessweek reported that stocks reached their highest level in six years, and mining groups posted the best performance of the 19 groups in the Stoxx 600. For example, Rio Tinto, the second biggest commodity producer in the world, rose 1.5 percent.
Furthermore, gold mining stocks have also increased, according to Avauncer. Many investors are now changing their strategies when it comes to mining stocks to leverage the recent boosts in the sector. For example, some shares jumped more than 16 percent in January.
In order to take full advantage to the modest increases in the current environment, mining groups must ensure that their equipment is functioning at optimal levels. An equipment condition monitoring system can prevent unplanned downtime that could present an obstacle to rising production levels and stock prices.
This type of technology can provide the means for predictive preventive maintenance, which can be used to guarantee that small internal issues within machine systems do not become larger. This not only prevents unplanned failures, but also reduces maintenance costs and overall operating expenditures.