With Volatile Commodity Prices, Diversified Miners Fare Better Than Gold Miners
Source: Mineweb.com (6/17/08)
In its review of global trends of the mining industry, Price WaterhouseCoopers predicts that "2008 will reflect production growth that reflects growing cost pressures."
"Commodity prices will remain volatile; however, recent significant price rises for bulk commodities will positively impact the bottom line," according to PwC's fifth annual review of the global mining industry.
"Consistent with the prior year, the industry leaders will continue to spread out from their geographical homes to operate assets globally," the PwC global mining team forecast in their report, Mine-As good as it gets?
Price WaterhouseCoopers' global mining team said diversified global miners fared better last year than gold companies who have experienced the weakest margins.
Emerging market companies have shown especially high growth with these companies now comprising 36% of the Top 40 miners' market capitalization.
The total market cap of the global mining industry achieved 54% growth as measured by the HSBC Global Mining Index. Vale recorded the fastest growth of the top 3 mining companies by market cap, surpassing Anglo American, which fell from third to fifth position as it continues to divest non-mining assets. BHP Billiton remains in the top position.