Recent years have proven much more profitable for the mining industry. High commodity prices continue to drive improved results across a range of key performance indicators for the industry. Improvements in profitability mask substantial increases in operating costs, which have occurred due to supply side constraints. Operating expenses have continued their increase, as has exploration expenditures. However, profit margins are expected to remain high for the near future, driven by exceptional demand sustaining the current commodity price levels. Indeed, we live in interesting times. Unprecedented demand, primarily driven by Asia, continues. New supply is coming on stream for many commodities, but is struggling to catch demand, partially as a result of under investment in the 1990s. Challenges ahead include improving mining safety, managing the complexities of environmental and regulatory requirements, and improving financial performance through improved processes and cost controls. Mining companies around the world are responding to these challenges through innovative strategies - seeking new capital resources, technological improvements, and consolidation.
Recent postings
Need to know* The future of IFRS for the extractive industries
The IASB is undertaking a project that could change the face of accounting for extractive activities.
Mining Deals 2007: Mergers and acquisitions activity in the mining industry
We examine both the rationale behind the overall trends and look at the key individual deals. We look at the year under review, the context of the preceding two years, and ahead to the future direction of deal-making in the sector. We also highlight, in a series of deal dialogues throughout the report, some of the critical issues for companies engaging in deal activity within the sector. Drawing on our global experience as an adviser to mining industry M&A players, our commentary addresses all key markets in the sector.
Global Mine* Bulletin - February 2008
Global Mine* Bulletin is a quarterly publication discussing trends and issues in the mining sector. In this edition, the impact that the sub-prime crisis will have on the mining industry is discussed, as well as performance improvement in the area of management reporting. PwC's new acquisition of GEM, an Australian-based consultancy focussing on strategy, operating effectiveness and profit maximisation in the mining industry is introduced in this newsletter.
Effective Tax Rate Comparison of the Global Mining Industry 2006: May 2007 Analysis
We are pleased to once again present our comparison of effective income tax rates in the global mining industry. This edition includes 51 companies operating throughout the world which are mining precious metals, base metals, industrial minerals (including cement) and coal.
Financial reporting in the mining industry*: International financial reporting standards
This edition of ‘
Financial reporting in the mining industry’ describes the financial reporting implications of IFRS across a number of areas selected for their particular relevance to the mining industry.
Mine: Riding the wave
This report provides an aggregated view of the global mining industry in 2006, represented by 40 of the world’s largest mining companies.
Global gold price survey results 2006
During the last quarter of 2005, the price of gold rose above the $500 mark for the first time since 1987, according to PricewaterhouseCoopers’ 2006 Global Gold Price Survey. Since then, it surged to a high of $720 in May 2006, settling into a wide trading range between $560 and $670 through to the end of 2006 — closing at $637.
Effective tax rates comparison of the global mining industry 2005: As of December 2005
This edition of PwC’s semi-annual comparison of effective income tax rates in the global mining industry covers 55 companies throughout the world that mine precious metals, base metals, industrial minerals (including cement) and/or coal.
Junior mine*: Review of trends in the AIM mining sector: November 2006
Junior mine* is a must read for companies in the junior mining industry and for those with an interest in it. The publication provides a consolidated view of the AIM mining industry in 2005, as represented by 50 of the largest AIM mining companies.
Real time: International financial reporting standards in the mining sector
This report highlights some of the key areas of difficulty that impact specifically on the mining sector under IFRS. It provides insight into how companies have dealt with these issues, through examples of the accounting policies included in their published IFRS financial statements.
Mine: Let the good times roll
The mining sector has delivered another spectacular increase in profits during 2005, on the back of a further strengthening in commodity prices. This is one of the key findings of
Mine: let the good times roll, the third annual review of global trends in the mining industry.
Junior mine: Review of trends in the AIM mining industry
Building on the success of
Mine, PricewaterhouseCoopers' annual review of global trends in the mining industry,
Junior mine provides a consolidated view of the UK's junior mining industry, as represented by 50 of the largest mining companies listed on AIM.
Global gold price survey results 2005
This PricewaterhouseCoopers survey summarises responses from 42 of the world's leading gold mining companies headquartered in Canada, the United States, the United Kingdom, Australia and South Africa. Thirty-five of these companies are SEC registrants. Our annual survey examines the values that gold producers have used to assess carrying values, the factors that have influenced their determination, and the disclosure they plan for their 2005 annual reports.
Effective tax rates comparison of the global mining industry 2004
April 2005 edition - We are pleased to present the latest edition of PricewaterhouseCoopers'
Effective tax rates comparison – global mining industry. This study has been compiled for the past five years, semi-annually since 2003, as a tool for benchmarking the financial impact of taxes on the global mining industry's financial position.
Mine: Enter the dragon
Mine - enter the dragon is PricewaterhouseCoopers' review of global trends in the mining industry. It provides an overview of the financial performance and position of the industry in 2004 based on an analysis of some of the largest mining companies across the world.
Responding to a changing environment: applying emissions trading strategy to industrial companies
2005 marks the start of the carbon-constrained economy in Europe. The EU Emissions Trading Scheme generates substantial risk - and potentially creates substantial opportunities - for companies in a number of industrial sectors.
Other recent postings:
