A remarkable year for the world’s Top 40 miners
- Market cap $926 billion up 30%
- Revenue $600 billion up 23%
- Gearing 31% down from 41%
- Net debt to EBITDA improved by 38%
Source: PwC analysis
For the world’s Top 40 miners, 2017 was a remarkable year. Thanks in large measure to the continuing recovery in commodity prices, fueled by general economic growth, revenues rose dramatically by 23 per cent. At the same time, the cost saving strategies of the past few years delivered, with margins and cash generating ability improved as well, leading to a sharp increase in profits.
Capital expenditures remained flat. With liquidity concerns that were still lingering in 2016 mostly resolved and balance sheets strengthened, companies have the flexibility to act. Across the board, a heightened focus on safety in operations, reducing leverage, and avoiding aggressive investments in new capacity indicates that management is proceeding in a measured and deliberate way.
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