PERTH (miningweekly.com) – New data from advisory firm PwC has found that the top global mining companies were reaching near boom profits, with net profits up 126% in the last year. Net profits for the top 40 mines reached $61-billion in 2017, and are forecast to climb further to $76-billion in 2018.
Market capitalisation also increased by 30%, to $926-billion in 2017, while revenue for the top miners increased by 23% to $600-billion, and earnings before interest, taxes, depreciation and amortisation (Ebitda) rose 38% to $146-billion.
PwC Australia mining leader Chris Dodd said on Tuesday that strong balance sheets were tempting the top 40 mining companies to pursue bold investment and growth opportunities, but many remained focused on maintaining a robust and flexible balance sheet to avoid the misgivings of the past.
Capital expenditure is at its lowest level since 2006, at $48-billion, with few large-scale projects currently approved.
Dodd said the results from this latest data show, however, that previous infrastructure investment by the top 40 mining companies, made during the mining boom, was now beginning to show results. “The hard work has been done by these mining companies to cut costs, drive efficiency and keep supply at sustainable levels,” he added.
For the rest of this article: http://www.miningweekly.com/article/top-global-miners-profits-to-rise-to-76bn-in-2018-2018-06-05