Don’t take mining for-granted

PWC’s new report “Mine 2016: Slower, lower, weaker…but not defeated” (which can be downloaded directly from here or sourced from their site here) reveals that the top 40 companies suffered:

  • their first collective net loss in history ($27 billion)
  • a decline in collective market capitalization of 37% (to below half a trillion dollars from a peak of $1.6 trillion in 2010)
  • the lowest return on capital ever
  • asset impairments totalling $53 billion (for a total of nearly $200 billion since 2010)
  • record high leverage of 46%
  • operating expenditure cuts of $83 billion.

Other than that, things were great!

Market cap of top 40 miners

Mining also saw the gap between its sector and other major indexes grow even larger:

Gap betwen miners and others

But to spite this, mining still paid its taxes.

Miners still paying taxes

About prosperitysaskatchewan

Consultant on Saskatchewan's natural resources.

Posted on June 16, 2016, in economic impact, miscellaneous, other minerals, political, potash, uranium and nuclear. Bookmark the permalink. Leave a comment.

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