JOHANNESBURG – PwC’s 2016 report on the world’s mining industry is not all doom and gloom. Although a slower, lower, weaker year for the industry is predicted, there is reason to believe things will turn around.
“2015 was a race to the bottom with many new records set by the world’s 40 largest mining companies,” said PwC.
The 40 largest companies recorded a collective net loss of US$27 billion, the first such loss for the group. Market capitalization was down 37%, in some cases below book value. High debt has many miners selling assets to stay solvent. Lastly, even as the industry focuses on lowering cost, it is meeting heavy headwinds.
The report analyzed 40 of the largest listed mining companies by market capitalization (there are several Canadians on the list). Four new entrants in this year’s top 40 were Chinese companies. AngloGold Ashanti has re-emerged in the top 40 for the first time since 2013. The number of emerging companies included in the top 40 has increased by two and now totals 19. For the first time, a lithium company has made the top 40.
Download the PDF version of PwC’s Mine 2016 report at www.PwC.com/gx/en/industries/energy-utilities-mining/mining/publications/mining-2016.html. It should be required reading for any executive wishing to guide his enterprise through these continuing times of economic uncertainly.