- Over the past decade, the mining industry has outperformed the broader equity markets but this trend has recently changed. While 2012 saw mining stocks fall slightly, they fell nearly 20% in the first four months of 2013, according to new analysis from PwC.
According to the Mine report, the industry faces a confidence crisis. Confidence over whether costs can be controlled, return on capital will improve and commodity prices will not collapse, among others.
Although it was a turbulent year for commodity prices, PwC’s analysis of the largest 40 miners shows total market capitalisation was roughly the same at the end of 2012 as the start - $1.2 trillion - but not for gold miners. The gold miners in the top 40 lost $29 billion in 2012, while in the first four months of 2013, they lost a further $58 billion in value. This followed a major sell-off in April after the largest one-day percentage drop in gold prices since the 1980s.