THE IMPACT OF THE COVID-19 PANDEMIC ON THE FINANCIAL ACTIVITIES OF MINING AND METALLURGY COMPANIES AS AN EXAMPLE OF PJSC «ARCELORMITTAL KRYVIY RIH»

Abstract

This article is an original study of the impact of the COVID-19 pandemic and Russia's armed aggression on the financial activities of mining and metals companies. The study found that the COVID-19 pandemic has caused the suspension of a significant part of the global economy, and the mining and metals industry is no exception. Companies in this industry had to prove their ability to overcome difficult challenges, continue to ensure the production process, and implement key investment projects. The study was based on statistical information provided by the World Steel Association. The armed aggression of the Russian Federation has added new threats to the dynamics of Ukraine's mining and metals industry. In addition to the pandemic and the consequences of armed aggression, Ukrainian mining and metals companies face a list of other new global challenges, such as uncertainty about future production planning, climate change, global warming, the fight against counterfeit products, falling demand for metals and bulk cargo in regions with a slump in economic activity, etc. The impact of the COVID-19 pandemic on the financial performance of enterprises was assessed by the authors on the example of the largest giant of the Ukrainian mining and metals industry, ArcelorMittal Kryvyi Rih. The analysis showed that, in general, Ukrainian mining and metals companies had a financial safety margin despite the COVID-19 pandemic, but military operations have already had a negative impact – production of key products has stopped at 30% of the target. In order to manage risks in the mining and metals industry, it is necessary to outline a strategy and an action plan both in a specific risk situation and in a situation that may arise from an existing risk. The authors propose to compile a matrix for assessing the risks that will have the greatest impact on the financial condition of an enterprise. The proposed risk assessment matrix for PJSC "ArcelorMittal Kryvyi Rih" will provide an opportunity to emphasize a solution that will increase the value and competitiveness of the enterprise or obtain other economic or social benefits. As for PJSC "ArcelorMittal Kryvyi Rih", the drivers of its further high economic activity will be both internal and external demand for the company's products. Based on the results of the study, the authors summarize the tools that should be used at this stage in the context of possible ways to control and contain the identified financial risks.