Mining profits hit lowest level in 10 years, down 72% in last year – BiV
The world’s top 40 mining companies have seen profits plummet by a shocking 72% in the last 12 months, hitting the lowest level in ten years, reveals PwC’s latest annual report on the global mining sector.
According to the study released June 5, global net profits have dropped to $20 billion in the last year, with gold, coal and diversified miners being the worst affected.
The combined market capitalization of world’s 40 largest companies, including giants BHP Billiton, Rio Tinto, Anglo American, Vale, Glencore Xstrata and Fortescue Metals, fell by 23% to $958 billion.
The commitment to reduce expenditure may drive merger and acquisition activity, with companies seeking to share capital expenditure and infrastructure, PwC said in the report titled “Mine 2014: Realigning Expectations.”
