mine* let the good times roll

Review of global trends in the mining industry
June 2006

mine* let the good times roll is PricewaterhouseCoopers' third annual review of global trends in the mining industry, providing an aggregated view of the global mining industry as represented by 40 of the world’s largest mining companies. This comprehensive market report shows that the mining sector has delivered another spectacular increase in profits during 2005, on the back of further strengthening in commodity prices. The results also demonstrate that investor confidence in the mining industry and its prospects have continued to strengthen.

Other financial highlights for the companies analysed include:

  • Revenue increased by 25% to $222bn
  • Net profit margin improved to 20% from 16% in 2004
  • Net cash inflow from operations increased by 34% to $58bn
  • Capital expenditure increased by 31% to $31bn
  • Exploration expenditure increased by 29% to $2bn
  • Gearing dropped to just 16% with year-end cash balances totalling $32bn
  • Return on equity has increased from less than 7% in 2002 to 25% in 2005
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