Aussie Mine 2015 - Going for Gold

Aussie Mine

In Aussie Mine - Going for Gold, we find that amongst the gloom, companies holding quality gold assets were the shining lights of 2015 with revenues up by 11% and share of mid-tier revenues growing 5%. Gold companies also benefitted from increased AUD gold price and a lower cost environment. 

Copper also glistened as gross margins on the metal reached 54% making it the most profitable commodity in the sector. Elsewhere falling commodity prices and investor confidence contributed to a decline in total market capitalisation amongst the Mid-Tier 50 companies.  

Our key findings:

  • Overall financial performance fell across most metrics. Market capitalisation of the Mid-Tier 50 fell to $36.2 billion, and as a group declined 16% on previous year
  • Revenues declined 1.8% and impairment losses of $5.5 billion continued to have impact on financial performance
  • Deal activity was slow but a we expect a ramp up throughout 2015-16 with the pipeline of pending deals estimated at $3.1.billion, nearly 8 times more than in 2014

Looking ahead, the Mid-Tier 50 mining companies must stay focussed on continued innovation, alternative sources of capital and improved project success to help revive its fortunes. 

Explore more of the key trends and industry themes 

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Aussie Mine 2015

Now in its 9th year Aussie Mine provides industry and financial analysis of the largest 50 mining companies listed on the Australian Securities Exchange (ASX) with a market capitalisation of less than $5 billion at 30 June 2015 (the mid-tier 50).

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PwC's Jane Madden and Franz Wentzel discuss the highlights...

Aussie Mine 2014: Standing out from the crowd

With commodity prices retreating from record highs that saw them soar well over the cost curve, costs are suddenly important again. No longer is it all about adding incremental tonnes (or pounds or ounces) whatever it takes. The industry has stabilised as the wall of new supply has finally caught up with the ever rising demand for minerals, leading to prices settling at or near the top of the cost curve.

Aussie Mine 2013: Unloved...survival of the fittest

It’s been a challenging year for the mid-tier 50 with falling commodity prices and increased costs impacting the bottom line. These conditions together with declining investor confidence have seen the combined market capitalisation of the mid-tier 50 plummeting 50% in two years. The entry level to make the mid-tier 50 is now just $172 million.