Friday, August 22nd16.1°C
22951

Big mining companies saw stocks and profits tumble in 2013, says PwC

TORONTO - The world's biggest mining companies saw their profits crushed and their stock market values plunge by a combined total of $280 billion in 2013, in one of the toughest years in memory, according to a report by PwC.

The accounting and consulting firm said Thursday that the top 40 mining companies in the world saw their collective stock market value drop 23 per cent last year as they booked $57 billion in writedowns, led by weakness from the gold miners.

Meanwhile, combined profits at the big firms totalled $20 billion, the lowest level in a decade.

"The industry is adjusting to tough times in the short-term with strategies in place to regain confidence," John Gravelle, global mining leader at PwC said in statement.

"For example, we've seen new faces at the helm of almost half of the largest 40 mining companies in the last two years."

Gold miners were hammered especially hard last year as the price of gold fell 27 per cent, its biggest plunge in over 30 years.

The sector accounted for $110 billion of the drop in market capitalization and five gold companies fell out of the Top 40 in 2013. Gold miners also accounted for $27 billion or nearly half of the impairment charges recorded by the top 40 companies.

The report also found that companies in emerging markets fared better as they earned a combined $24 billion, compared with a loss of $4 billion by those in developed countries.

Gravelle said the question remains on which firms will be able to thrive in difficult times.

"Merger and acquisition activity, which was surprisingly subdued in 2013, seems to have started to pick up in early 2014," said Gravelle.

"And backed by a stronger U.S. economy and continued strong demand from China, the market is impatient to see demonstrable returns from recent strategic choices to deliver against the mantra of lower costs and higher productivity."

The PwC report noted that nearly half of the top 40 companies changed chief executives over the last two years, with seven firms switching leadership in 2013.

The report said companies have pursued what it called "traditional quick-fixes" to falling commodity prices including cutting workers, slashing costs and deferring capital spending. Others made more fundamental shifts in strategy.

PwC said some companies also looked to simplify and focus on extracting value from higher quality assets as well as share mining infrastructure as a means to reduce costs and risk.

The Canadian Press


Read more Business News

22710


Recent Trending




Today's Market
S&P TSX15519.09-36.17
S&P CDNX1000.56-1.64
DJIA17018.31-21.18
Nasdaq4538.661+6.557
S&P 5001989.53-2.84
CDN Dollar0.9130-0.001
Gold1278.40+4.7001
Oil96.30+1.82
Lumber354.70-0.90
Natural Gas3.864-0.025

 
Okanagan Companies
Pacific Safety0.18-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.20-0.01
Cantex0.065-0.005
Anavex Life Sciences0.2512-0.0088
Metalex Ventures0.08+0.005
Russel Metals37.14-0.45
Copper Mountain Mining2.97+0.09
Colorado Resources0.1850.00
ReliaBrand Inc0.095+0.01
Sunrise Resources Ltd0.025-0.005
Mission Ready Services0.215-0.015

 



22831

FEATURED Property
19142416 - 2398 Abbott Street, Kelowna, BC
2 bedrooms 2 baths
$1,298,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


What is a journey without a destination?

Photo: ContributedI would call it a joy ride... You see a planned project or business has a destination. It may be an ongoing revenue stream, it may be a business value or an exit strategy. If you don...


Joint accounts: what you need to know!

Establishing a joint account may seem like a great strategy at first glance. However, there are many factors that must be considered before taking this action. This article will explore the use of &ls...


Cost of an Injury Lawyer

Let’s face it; nobody wants to pay for legal services if they do not have to, but if you have been injured in an accident you may have thought about hiring a lawyer to help you navigate your cla...

_



23002

22885


Member of BC Press Council


22097