B.C. Mining Industry Net Income Up 166% Over 2002

The financial picture for British Columbia’s mining industry improved in 2003, continuing a five-year trend. An increase in commodity prices helped to push total industry net income up, but the stronger Canadian dollar offset some of the effects of higher metals prices. These and other findings were revealed in mid-May by PricewaterhouseCoopers (PwC) in a report titled The Mining Industry in British Columbia–2003, an annual survey and assessment of the mining industry’s overall performance (available on-line at pwc.com/ca-mining).

PwC’s survey, which summarizes the 2003 year-over-year financial information of B.C.’s 13 producing mines and one smelter, found the industry reported a net income of $285 million compared with $107 million in 2002. Gross mining revenues were up by 3.5% to $3.65 billion in 2003 over the 2002 figure of $3.53 billion. The survey also found that cash flow from operations in 2003 was $598 million, an increase of 5% from 2002. This year’s return on shareholder investment was 10.9%, a considerable increase over the 4.1% reported in 2002.

province, accounting for 36% or $964 million of the industry’s $2.70 billion net revenues (2002: 38% or $964 million of the $2.52 billion net revenue).