In recent years, the commodity trading industry, especially within mining and metals, has seen a remarkable uptrend, underpinned by complex supply and demand dynamics, geopolitical influences, and currency fluctuations.
These elements have not only driven significant price volatility but also introduced financial intricacies that impact market participants. The inherent volatility of these markets poses a dual challenge: it subjects traders to credit risks from potential defaults and creates liquidity constraints, complicating the acquisition of financing.
This volatility is further complicated by supply chain and logistical challenges unique to the mining and metals sectors. Issues such as transportation delays, documentation inaccuracies, and stringent regulatory compliance requirements can severely disrupt trade finance transactions and inflate operational costs. These complexities are magnified in an era where the industry is on the threshold of a transformative shift towards the next normal, spurred by the global energy transition.
This transition, characterized by the economic and physical integration of global food, energy, and materials systems, promises to heighten structural volatility, disrupt traditional trade flows, and redefine commodities in unprecedented ways.
From a trading perspective, this evolving landscape presents a mix of opportunities and challenges, fundamentally altering commercial relationships and profitability metrics.
Commodity trading value pools have witnessed substantial growth, nearly doubling EBIT from $27 billion in 2018 to an estimated $52 billion in 2021, predominantly fueled by gains in oil trading.
This growth trajectory continued into 2022, setting an all-time high $100 billion for gross margin. However, the path to capitalizing on these opportunities is fraught with hurdles.
The past few years have underscored the market’s vulnerability to spikes in volatility, triggered by the pandemic, extreme weather events, geopolitical tensions, and macroeconomic shifts. These fluctuations have rippled through various sectors, affecting not just energy but also metals, where energy inputs significantly influence production economics.
One company addressing these complex issues head on is MineHub Technologies Inc. (TSXV:MHUB) (OTCQB:MHUBF), an enterprise-grade digital supply-chain platform that connects buyers, sellers, labs, and financiers in a digitally integrated workflow that is usable, shareable, verifiable and unforgeable.
MineHub Revolutionizes Trade Finance and Logistics in Metals and Mining
MineHub‘s SaaS platform eliminates old manual processes, leading to increased efficiency, cost reduction, enhanced security, optimized working capital, and greater transparency across global supply chains. Global mining giants like Capstone Copper, Sumitomo Corporation, and Codelco have already adopted MineHub‘s platform for logistics, compliance, trade management, and financing operations.
On May 14, MineHub Technologies Inc. (TSXV:MHUB) (OTCQB:MHUBF) announced a partnership with Surecomp Business Solutions, a leader in cloud-based trade finance solutions. This collaboration is set to revolutionize the digitization of trade finance in the commodities sector by integrating MineHub‘s platform with Surecomp’s RIVO. This move is poised to unlock new efficiencies, transparency, and security in trade finance within the commodities sector, providing users with enhanced capabilities such as streamlined document management, real-time visibility into trade finance processes, ESG compliance tracking and mitigation of fraud risks.
MineHub has also signed several new clients this year including a services agreement with a large Canadian bank to deploy its Consignment Module for managing non-ferrous metals transactions. Announced on March 27, this will be MineHub‘s first major customer in the finance sector, laying a foundation for future growth and new revenue streams. Collaborating with one of North America’s largest banks not only validates MineHub’s supply chain solutions but also expands its market reach.
On March 19, the company expanded its partnership with Sumitomo, which involves integrating Sumitomo’s refined copper business onto the Minehub Platform, starting with key customers in the Asian market. Sumitomo will support sales efforts for the refined platform, highlighting its confidence in MineHub‘s capabilities to deliver value in the metals market.
As MineHub continues to drive innovation and expand its offerings, it is poised to play a pivotal role in shaping the future of the metals and mining sector.
Click here to learn more about MineHub Technologies Inc. (TSXV:MHUB) (OTCQB:MHUBF).
Featured Image @ FreePik
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1) The author of the Article, or members of the author’s immediate household or family, do not own any securities of the companies set forth in this Article. The author determined which companies would be included in this article based on research and understanding of the sector.
2) The Article was issued on behalf of and sponsored by, Minehub Technologies Inc. Market Jar Media Inc. has or expects to receive from Minehub Technologies Inc.’s Digital Marketing Agency of Record (Native Ads Inc) one thousand seven hundred USD for this article.
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6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, “forward-looking statements”), which reflect management’s expectations regarding Minehub Technologies Inc.’s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as “predicts”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. These forward-looking statements include, among other things, statements relating to: (a) revenue generating potential with respect to Minehub Technologies Inc.’s industry; (b) market opportunity; (c) Minehub Technologies Inc.’s business plans and strategies; (d) services that Minehub Technologies Inc. intends to offer; (e) Minehub Technologies Inc.s milestone projections and targets; (f) Minehub Technologies Inc.’s expectations regarding receipt of approval for regulatory applications; (g) Minehub Technologies Inc.’s intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and (h) Minehub Technologies Inc.’s expectations with regarding its ability to deliver shareholder value. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: (a) the ability to raise any necessary additional capital on reasonable terms to execute Minehub Technologies Inc.’s business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) Minehub Technologies Inc.’s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) Minehub Technologies Inc.’s ability to enter into contractual arrangements with additional parties; (e) the accuracy of budgeted costs and expenditures; (f) Minehub Technologies Inc.’s ability to attract and retain skilled personnel; (g) political and regulatory stability; (h) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; (i) changes in applicable legislation; (j) stability in financial and capital markets; and (k) expectations regarding the level of disruption to as a result of CV-19. Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of Minehub Technologies Inc. to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) Minehub Technologies Inc.’s operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; (b) public health crises such as CV-19 may adversely impact Minehub Technologies Inc.’s business; (c) the volatility of global capital markets; (d) political instability and changes to the regulations governing Minehub Technologies Inc.’s business operations (e) Minehub Technologies Inc. may be unable to implement its growth strategy; and (f) increased competition.
Except as required by law, Minehub Technologies Inc. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does Minehub Technologies Inc. nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this document. Neither Minehub Technologies Inc. nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document.
7) Any graphs, tables or other information demonstrating the historical performance or current or historical attributes of Minehub Technologies Inc. or any other entity contained in this document are intended only to illustrate historical performance or current or historical attributes of Minehub Technologies Inc. or such entities and are not necessarily indicative of future performance of Minehub Technologies Inc. or such entities.
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