The factors that push and pull products and prices underpin procurement decisions from the buying desk to the C-Suite. That's why Tamarack tracks markets, shares leading insights, partners with organizations to dive deeper into the data, and develops proprietary information to follow - and lead - the market.
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Tamarack Mining Supply Index: August 2022
Index Movement
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Index dipped lower in August but remained above 50, indicating slightly positive growth.
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Mobile Equipment, Tires, Chemicals, and Fixed Assets all experienced negative growth of at least 5%.
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Index was propped up by contract mining/mining services category, with Perenti Global (parent of Barminco, Ausdrill, etc.), recording an impressive 36% share price increase. A major factor driving this was improved margins in underground and surface mining as a result of secured contract rate increases.
Headwinds
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Persistent global inflation continues to apply upward pressure on the cost of mining inputs.
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Overseas manufacturing continued to slump in August, driven by China's slowdown caused by "COVID Zero" restrictions.
Tailwinds
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Inflation is having a negative impact on demand for products and services.
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Fear of a coming global recession are negatively influencing investment and stocks.
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Freight rates continue to fall month-over-month, but remain above pre-pandemic prices.
Cost Tracking Models: August 2022
Each model represents an estimated "should cost" based on its constituent components and inputs (i.e., commodity, labour, freight).
Sample cost models based on delivery to specific locations. Please enquire with Tamarack to learn more.
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