Review of global trends in the mining industry—2009

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In the space of the past 12 months, utility companies have found themselves in a very different world with a series of momentous events — the collapse of giants of the banking system, the credit and wider financial crisis, the reversal in demand and price growth, and outright recession in many major markets.

This sixth edition of Mine, the annual report ‘Mine 2009: When the going gets tough…’ reviewing global trends in the mining industry, says that despite the impact of the downturn, the results for the year to 31 December 2008 were strong, but operating costs continue to erode profit margins which presents a tough road ahead, requiring companies to control costs and be flexible. This report provides a comprehensive analysis of the financial performance and position of the global mining industry as represented by the largest Top 40 mining companies by market capitalisation.

Tim Goldsmith, Global Mining Leader, PricewaterhouseCoopers, says:

“Despite another record year for the industry, the Top 40 mining companies have seen their market capitalisation slashed by 62% from 2007, due to the fall in commodity prices and the drop in shareholder confidence. While the long term fundamentals still look favourable for the industry, companies with high debt levels have been particularly hard hit by investors who are increasingly focussed on short term cash generation”.