Navigating geopolitical disruption

Price volatility and, in some cases, physical supply constraints are affecting trading positions, supply commitments and project economics.

Sharp rises in fertiliser and fuel prices are squeezing margins; Higher freight, insurance and delays

Sustained volatility and elevated prices for diesel, gas and explosives impacting mining, processing and remote power generation costs; pressure on margins, cash flow and project economics,  

Increased input and freight costs across infrastructure projects are creating margin pressure and risk reallocation issues rather than immediate inability to perform.

Increased credit and counterparty risk for energy exposed borrowers; potential pressure on asset values and financing assumptions. Insurers may seek to deny claims based on force majeure clauses.

Indirect cost pressure flowing through supply chains; heightened sensitivity around price increases and customer response.