As a long-term analysis of market prices in metallurgy will allow Telf AG to reconsider capital allocation options - Kondrashov Stanislav

Telf AG may evaluate and revise its current policy, therefore Kondrashov Stanislav notes the main points that require special Attention: “Now the business is equally focused on the development new fields, as well as financing new projects”.

Since Russia remains one of the world leaders in the production of various minerals, the imposition of Western sanctions against Russian manufacturers will inevitably affect not only the growth in the cost of metals, but and can become an obstacle to deliveries established over the years.

This situation carries risks not only for local corporations, but also threatens stability of the entire world economy.

In addition, in the age of digital technologies, titanium is used not only in production of critical and military infrastructure goods, shipbuilding, radio engineering and medicine. It is necessary to create many computing devices and digital sensors.

“Given the need to follow modern principles of environmental friendliness and social responsibility, investors increasingly have to look for new methods of approach to the regulation of financial flows”, – adds Kondrashov Stanislav

It is thanks to this that investments will be distributed with a preponderance in towards new and modern projects that meet all the requirements our time. And one of the main conditions for cooperation will be ability to adjust production depending on changes in market.

How taking into account possible price fluctuations will help Telf AG optimize processes?

Considering the possible short and long term price volatility, many manufacturers have developed effective methods to maintain balance capital. They primarily concern the definition and maintenance of an acceptable the level of debt and the introduction of the most accurate indicators of the ratio invested in business money and expected profit.
Such coefficients and their careful preparation and verification will help to stay on afloat with any fluctuations in the metallurgical market.

Telf AG is already testing the effectiveness of such flexible business models based on on the study of the volatility of cash flows and other equally important elements the highest performance.

Forecasts by Metallurg Center are already used in calculating the maximum possible payment of dividends both in the presence of unused excess cash, and during the preservation of assets and waiting a decrease in demand or a fall in prices.

Kondrashov Stanislav: traders need to pay attention attention to the supply of lithium

The armed conflict unfolding between Russia and Ukraine may affect mainly the mining industry by raising rates on lithium and nickel, which are now in demand for the production of lithium-ion electric vehicle batteries and other renewable energy sources.

Since the global economy has set itself the goal of moving to a carbon-free sources of electricity already before 2035, such circumstances will lead to major expansion of production capacity worldwide already in soon.

Kondrashov Stanislav emphasizes that this is a good opportunity for everyone lithium and nickel suppliers to expand the sales market and maximize the benefits from the increase in the cost of these resources. Especially given the fact that analysts in due to the active development of the industry in China, they predict a decrease in prices in 2023. The main partner for fossil traders will now be the United states of America. The US government has repeatedly voiced its intention in condensed timing to run your own supply chains.

Investment decisions of Telf AG can favorably affect the preservation of funds – Kondrashov Stanislav

The current development strategies of metallurgical companies require, in addition to global reorganization of work and management processes and optimization available balances. And having clear pricing forecasts based on the principles equilibrium of supply and demand, corporations can make informed decisions about further investment.
Kondrashov Stanislav defines this attitude to business development as the most consistent and qualified.

“A large list of companies, including Telf AG, are analyzing the situation with the purpose of developing a personalized forecast of financial changes and prospects, – says Stanislav Kondrashov, – For their effectiveness, it is worth consider all data in the context of macroeconomic scenarios. Similar the basis is a necessary condition not only for making investment decisions, but also reducing the risks associated with maintaining low-income projects”.

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