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General Market Commentary
Top miners doing well, but not getting credit for it – PwC
JOHANNESBURG (miningweekly.com) – The world’s top 40 mining companies continued to consolidate their performance of the past several years by delivering steady growth in 2018, PwC’s ‘Mine 2019’ report, published on Tuesday, states.
Combined, these companies’ revenue had increased by 8% year-on-year, which PwC says was buoyed by higher commodity prices and marginally improved production. The companies also boosted cash flows, paid down debt and provided a record dividend of $43-billion to shareholders during the year.
The steady performance is forecast to continue this year, with revenue remaining stable.
However, weaker coal and copper prices are expected, which will marginally offset higher production and higher average prices for iron-ore.
Further, despite this decent performance in 2018, PwC laments that investors “seem unimpressed” by the top 40 companies’ results, judging by market valuations, which fell by 18% year-on-year.
While total market capitalisation increased in the first quarter of this year, it remains 8% lower than at the end of 2017.
“In spite of the strong operating performance of the world’s top miners, there is still more room for improvement for mining to continue to create and realise value in a sustainable manner,” says PwC Africa energy utilities and resources leader Michal Kotzé.