- Idle cash investment
- Long term financial strategy for the mining sector
According to Deloitte's 2026 Tracking the Trends report, ‘future-proofing’ portfolios is the second critical trend shaping mining and metals. As companies navigate surging demand for critical minerals, AI-enabled operations, and shifting national security priorities, the pressure to diversify has never been more intense.
Yet the discussions focuses exclusively on operational diversification.
"On one hand, [mining companies] should manage current cashflow and shareholder distributions to deliver near-term production and profitability. On the other, they should position themselves for long-term growth as demand for critical materials surges, customers seek low-carbon feedstock and investors scrutinise exposure to emerging risks."
The missing piece of the puzzle is that long-term cash flow should also be strategically managed, leveraging idle cash investment to reduce monetary risk against emerging operational risks.
Understanding Trend 2: future-proofing portfolios
Trend 2 has valuable insights for mining companies. Here's the TL:DR.
- Evaluate downstream models: mining companies may need to shift their mindset from supplying commodities to providing solutions. Companies could consider moving into refining, processing, and differentiated products to command premiums and provide value to customers.
- Unlock value through secondary materials: as primary metal reserves become increasingly scarce and project permitting times lengthen, recycling and secondary materials may offer a pathway to increase production without the capital intensity of new mines.
- Collect value chain intelligence: regardless of whether evaluating downstream opportunities or exploring secondary materials, it will be important to obtain intelligence about end customers through the value chain and synthesise this data to make informed operating decisions.
- M&A as a strategic lever: striking the right deal and integrating effectively can help companies unlock portfolio synergies without the complexity of establishing new assets. Mining companies are increasingly acquiring downstream capacity, technologies to enable more efficient production, recycling infrastructure and customer-facing platforms.
- Upskill the workforce: as mining companies diversify, new skills and organisational capabilities will be required. Companies should consider implementing talent strategies that blend traditional mining expertise with digital, commercial and sustainability skills.
But we believe there's a simple, yet critical gap in the narrative
A common pattern for mining companies is that they raise substantial capital upfront during exploration phases. When successful, this cash can sit idle for lengthy periods during the exploration phase.
This pattern creates a significant missed opportunity and one that fits perfectly into the realm of 'future-proofing' the portfolio from a financial perspective.
What is the answer? Extend operational runway through optimised cash reserves.
Rather than leaving capital dormant in low-yield accounts, invested cash reserves provide a critical financial buffer to weather commodity price downturns without forced asset sales or operational cutbacks, particularly valuable for high-risk or long-development-cycle projects.
Primary's platform delivers institutional-grade yields (averaging 4.5%) that can extend a company's runway by an average of 2.5 months, creating a longer runway for strategic decision-making.
The result is the ability to extend cash reserves and maintain financial flexibility to invest in new technology, capitalise on acquisition opportunities when they arise, or implement sustainable practices without compromise.
Beyond the short-term vs. long-term dilemma
Treasury strategy eliminates the choice between managing short-term financial outcomes and pursuing long-term operational goals. Instead, mining companies can achieve long-term financial outcomes that align seamlessly with their operational requirements. Treasury management shifts from a necessary cost center into a strategic advantage in an increasingly competitive and capital-intensive industry.
About Primary
Primary provides modern treasury management solutions for complete cash visibility, idle cash optimisation, and FX risk management - all in one platform.
