We are pleased to launch the Mine 2012, The growing disconnect .
This is PwC's flagship mining publication which analyses the financial performance and position of the global mining industry as represented by the top 40 mining companies by market capitalisation
From ten years of data and trends, we have seen some of the greatest ups and downs the mining industry (and the global economy for that matter) has ever seen.
This years Mine* notes:
"The global mining industry is facing a growing disconnect as despite record profits for the world’s 40 biggest miners in 2011 thanks to high commodity prices, investors proved fickle, demanding greater capital discipline and increased shareholder returns.
Against a backdrop of shareholder demands for heightened capital discipline, the story for the future will be about the ability to bring on supply through developing the right projects. We continue to observe a structural change of higher average commodity prices which are underwritten by higher production costs and lower grades. However, this does not guarantee increasing gross margins.
The Top 40 invested $98 billion in capital projects in 2011 and plan for a further $140 billion for 2012 in an effort to increase supply. The market, however, doesn’t seem to be buying the industry’s long-term growth story, which has sent share prices lower−2011 marks the start of the growing disconnect."