Mine 2014: Realigning Expectations

Review of global trends in the mining industry

Welcome to PwC's 11th annual review of global trends in the mining industry - Mine. This analysis is based on the financial performance and position of the global mining industry as represented by the Top 40 mining companies by market capitalisation.

2013 saw one of the most difficult operating environments for miners in many years with falling commodity prices and rising costs putting a tight squeeze on profits. During the year the Top 40's aggregate net profit sank $52 billion (72%) to a decade low $20 billion; gold companies were responsible for $20 billion of net losses.

As a result market values declined by $280 billion, a 23% reduction on the prior year, now down to $958 billion, with gold unsurprisingly hard hit. Diversifieds and coal didn't fare much better as the sector took a beating. However, despite diminished profitability and shrinking cash, dividend yields from the Top 40 continued to increase, with gross dividends paid up 5% and dividend yields slightly up to 4%.

Collectively the mining industry spent 2013 realigning stakeholder expectations and 2014 will see if the renewed strategies of miners can successfully lift the industry off the bottom by delivering sustainable growth.

New Mine iPad App

This year, for the first time, Mine is being released as an interactive App. To download it on your iPad just click the first link below or search for "pwc mine" in the App Store. The Mine 2014 report App contains special features not available in the pdf including a number of animated and interactive elements, a compendium of the full Mine series from 2004 and a number of other recent PwC mining thought leadership publications. The Mine App library will be continuously updated with interviews, articles and regional Mine publications from PwC's dedicated global mining team.

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Mine 2014 interactive App for iPad Mine 2014: Realigning Expectations