Pwc Mineria 2012
Páginas: 72 (17991 palabras)
Publicado: 9 de agosto de 2012
www.pwc.com
Mine The growing disconnect
Review of global trends in the mining industry—2012
Mine The growing disconnect
Contents
01
Executive summary
1 2 14 16
02 03
Industry in perspective A view from the top
04 05 06 07 08 09 10 11
Ten-year trends 2002-2011 Sustainability: the Top 40 walk the walk, but do they talk the talk? Financial review Reserves andproduction People−from expat to local Glossary Top 40 companies analysed Explanatory notes for aggregated financial information
22 26 38 42 46 47 48 49 50 51
12 13 14
Key contributors to Mine Contacting PwC Other PwC mining publications
Mine The growing disconnect
01 Executive summary
Ten years of data. Ten years of trends. Ten years of some of the greatest ups and downs the miningindustry (and the global economy for that matter) has ever seen. Welcome to PwC’s annual review of global trends in the mining industry−Mine. These reviews provide comprehensive analysis of the financial performance and position of the global mining industry as represented by the Top 40 mining companies by market capitalisation. These 40 companies represent the vast majority of the industry’sactivity and serve as an excellent proxy for the industry as a whole.
2011 was a year of a great contrast for the mining industry.
The Top 40 posted record profits of $133 billion, generated record operating cash flows, and yet market capitalisation fell by 25%. The European debt crisis and fears of a slowdown in global growth dominated the markets during the second half of the year. The broadermarkets fell and mining company share prices were hit particularly hard. Investors doubted the industry’s long-term demand fundamentals. We believe these remain solid on the back of strong growth in emerging markets. The story for the future will be about the ability to bring on supply through developing the right projects. That poses challenges. We continue to observe a structural change of higheraverage commodity prices which are underwritten by higher production costs and lower grades. However, these high commodity prices do not guarantee increased gross margins. Still, against a backdrop of shareholder demands for heightened capital discipline, CEOs are convinced that increasing supply is critical to the future of the industry. The Top 40 invested $98 billion in capital projects in 2011and plan for a further $140 billion for 2012. The market, however, doesn’t seem to buy the industry’s long-term growth story, which has sent share prices lower−2011 marks the start of the growing disconnect.
High commodity prices in 2011 supported a record level of net profit but margins remained flat, highlighting a structural change in the industry’s cost base. Production volumes in 2011 wereon average 6% higher than in 2010, but for gold and copper in particular, production volumes remained at similar levels to those reported in 2005. Companies simply weren’t able to bring on production for these two commodities, highlighting the shift from demand to supply as the major factor in today’s industry. With the price earnings ratios for the Top 40 at one of the lowest levels seen in years,miners are faced with the challenge of winning back investor confidence. Despite record increases in shareholder distributions in 2011, falling stock prices suggest that investors expect greater cash returns. In A view from the top, mining industry CEOs note their increasing focus on supply. However, a growing disconnect has appeared. Investors are demanding capital discipline to increaseshareholder returns while miners are looking to use cash from record results to develop new projects. Competing demands for cash are making it more challenging to deliver on the $410 billion in spending on capital projects announced by the Top 40, including $140 billion announced for 2012. As a result, CEOs are spending more of their time engaging shareholders and making sure their capital investment...
Mine The growing disconnect
Review of global trends in the mining industry—2012
Mine The growing disconnect
Contents
01
Executive summary
1 2 14 16
02 03
Industry in perspective A view from the top
04 05 06 07 08 09 10 11
Ten-year trends 2002-2011 Sustainability: the Top 40 walk the walk, but do they talk the talk? Financial review Reserves andproduction People−from expat to local Glossary Top 40 companies analysed Explanatory notes for aggregated financial information
22 26 38 42 46 47 48 49 50 51
12 13 14
Key contributors to Mine Contacting PwC Other PwC mining publications
Mine The growing disconnect
01 Executive summary
Ten years of data. Ten years of trends. Ten years of some of the greatest ups and downs the miningindustry (and the global economy for that matter) has ever seen. Welcome to PwC’s annual review of global trends in the mining industry−Mine. These reviews provide comprehensive analysis of the financial performance and position of the global mining industry as represented by the Top 40 mining companies by market capitalisation. These 40 companies represent the vast majority of the industry’sactivity and serve as an excellent proxy for the industry as a whole.
2011 was a year of a great contrast for the mining industry.
The Top 40 posted record profits of $133 billion, generated record operating cash flows, and yet market capitalisation fell by 25%. The European debt crisis and fears of a slowdown in global growth dominated the markets during the second half of the year. The broadermarkets fell and mining company share prices were hit particularly hard. Investors doubted the industry’s long-term demand fundamentals. We believe these remain solid on the back of strong growth in emerging markets. The story for the future will be about the ability to bring on supply through developing the right projects. That poses challenges. We continue to observe a structural change of higheraverage commodity prices which are underwritten by higher production costs and lower grades. However, these high commodity prices do not guarantee increased gross margins. Still, against a backdrop of shareholder demands for heightened capital discipline, CEOs are convinced that increasing supply is critical to the future of the industry. The Top 40 invested $98 billion in capital projects in 2011and plan for a further $140 billion for 2012. The market, however, doesn’t seem to buy the industry’s long-term growth story, which has sent share prices lower−2011 marks the start of the growing disconnect.
High commodity prices in 2011 supported a record level of net profit but margins remained flat, highlighting a structural change in the industry’s cost base. Production volumes in 2011 wereon average 6% higher than in 2010, but for gold and copper in particular, production volumes remained at similar levels to those reported in 2005. Companies simply weren’t able to bring on production for these two commodities, highlighting the shift from demand to supply as the major factor in today’s industry. With the price earnings ratios for the Top 40 at one of the lowest levels seen in years,miners are faced with the challenge of winning back investor confidence. Despite record increases in shareholder distributions in 2011, falling stock prices suggest that investors expect greater cash returns. In A view from the top, mining industry CEOs note their increasing focus on supply. However, a growing disconnect has appeared. Investors are demanding capital discipline to increaseshareholder returns while miners are looking to use cash from record results to develop new projects. Competing demands for cash are making it more challenging to deliver on the $410 billion in spending on capital projects announced by the Top 40, including $140 billion announced for 2012. As a result, CEOs are spending more of their time engaging shareholders and making sure their capital investment...
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