Base Metals Costs 2022 Q3 Update

Will base metals producer margins be squeezed next year? Base metal miners and producers are experiencing significant inflation this year. Elevated input prices within the main drivers, including labour, energy, consumables, and chemicals have resulted in higher site costs. Increases in ocean freight rates and TCRCs have also pushed up realisation costs. Yet, despite these inflationary pressures, the average base metal producer has been able to cushion these cost increases through high by-product credits, thanks to the high metal price environment in 2022 H1. For the rest of the year and into 2023, CRU expects some of these inflationary costs to continue their upwards trend, while metal prices will maintain their downward slide. If these two main trends keep running their course, could miner’s margins be in danger? Join us in this webinar to find out how base metals costs are finishing this year and where they are heading to in 2023. CRU’s Costs & Emissions team will delve into the major trends shaping costs performance in the copper, nickel, lead & zinc, and gold industries. We’ll be covering some the main questions being asked in the industry, including: • Will miners profit margins get squeezed? • Is cost inflation set to ease by next year? • How will marginal producers be affected by the lower metal price expectations?