Mining

The mining industry faces a confidence crisis. Low confidence in cost controls, return on capital and commodity prices are keeping industry leaders awake at night. To add to these concerns, the mining industry has recently stopped outperforming the broader equity markets—mining stocks fell nearly 20% in the first four months of 2013.

In response, miners are trying to rebuild the market’s confidence. Capital expenditures have been scaled back, hurdle rates are being increased and non-core assets are being disposed. There’s a shift from maximizing value by increasing production volumes to maximising returns from existing operations from improved productivity and efficiencies.

Regaining investor confidence depends on how the industry responds to its rising costs, increasingly volatile commodity prices and other challenges such as resource nationalism. Now is the time to show that the industry can deliver in good times and bad, and remain a good industry to operate in for many years to come.

Mining challenges

Recent postings

Mining tax update
This issue of Mining tax update covers mining updates from July to December 2013. The Industry Update section offers insight into the current economic state of the industry. We summarise alternative financing options, identify the needs of investors regarding reporting from mining companies, discuss the economic impact of gold on the global economy, provide an overview of a global gold, silver and copper price report, and update readers on the Dodd-Frank Act. This issue closes with a look into recent tax technical matters, including an update on the impact of the final Repair Regulations, and the Australian Government’s repeal of the MRRT provisions.


SEC comment letter trends for the energy and mining industry
This publication provides an analysis of SEC comment letters issued to registrants across the energy and mining value chain, including exploration and production, midstream, downstream, drillers, oilfield services, and integrated energy companies.


Mining Tax Quarterly
A quarterly review of tax developments and industry updates for the global mining sector. This issue features a discussion of the 2013 outlook on gold and silver prices, political landscape in certain territories, among other issues.


Mine: A confidence crisis
Mining is an industry in crisis. At the same time, volumes are up, dividend yields are up and commodity prices have fallen, but not crashed. Long term demand fundamentals are still there. So what’s the crisis? The broader markets have rebounded as investors have started to rotate back into equities. But mining equities have been left behind. The industry lacks a clear investment proposition. But why? The market has lost confidence in mining. And the markets reflect this confidence crisis.


2013 Global Gold Price Report
Gold is the favoured commodity of 2013 with more than 80% of gold executives expecting to see a rise in the price of gold.


Junior Mine 2012
Equity financing, raised by 2012’s Top 100 mining companies listed on TSXV, as at June 30, decreased by a troubling 41%.


Corporate income taxes, mining royalties and other mining taxes
This summary of income taxes, mining taxes and mining royalties compares the various governmental costs of investing in a mining operation in a particular country. We have gathered specific tax information by country regarding coal, copper, gold and iron ore mineral operations.


Mining Tax Quarterly Q4
A quarterly review of tax developments and industry updates for the global mining sector. This issue features a discussion of the 2013 outlook on gold and silver prices, political landscape in certain territories, among other issues.


Mine ― The growing disconnect
The global mining industry is facing a growing disconnect as despite record profits for the world’s 40 biggest miners in 2011 thanks to high commodity prices, investors proved fickle, demanding greater capital discipline and increased shareholder returns.


On the road again? Global Mining 2011 Deals Review & 2012 Outlook
This new study offers key PwC observations of M&A in the mining sector in 2011. In addition to traditional deal tallies and metrics, it also includes a précis of geographic trends, M&A value drivers and a closer look at activity by resource.


2012 Gold Price Report
Annually, PwC surveys gold mining companies from around the world, including executives from senior and junior mines. Read our 2012 survey to learn why gold companies’ shares are not keeping pace with gold prices.