Flow Partners Inc.

The cyclical nature of the mining and metals sector promotes reactive behaviour to changing market conditions. When times are good, production is amplified, often sacrificing efficiency in order to maximize revenue. These conditions generally lead to rewarding short-term thinking while eroding sustainable profit margins. At the first sign of slowing emerging economies, cost cutting measures are widely implemented to quickly pull in the reins in an apprehensive attempt to regain control over escalated costs in a climate of falling metal prices.