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London, 25 May 2010 — The beginning of 2009 saw commodity prices continuing to fall globally, tough price negotiations with customers and challenging market conditions. However, companies responded swiftly and decisively: funding was restructured, mines were closed and production cut as margins declined. However, in contrast, the year ended with the market capitalisation of the Top 40 returning to the heights of 2007 and a cautious optimism returning to the, according to PricewaterhouseCoopers’ seventh annual review of global trends in the mining industry – Mine, Back to the Boom.
Tim Goldsmith, global mining leader, PricewaterhouseCoopers comments:
“Although 2009 saw overall revenues decline, a drop in net profit and a decrease in cash flow in the industry, none of the Top 40 companies were subject to bankruptcy or voluntary administration provisions. This was largely due to their ability to remove their debt overhang, strengthening commodity markets over the year and the positive impact of government stimulus packages around the world.
“On the other hand, there were no significant transactions completed during the year – pointing to a potential missed opportunity for those that may have had the available financial resources.