Aussie Mine 2018

A deep dive analysis of the largest Australian mid-tier mining companies, the issues impacting them, and the opportunities in the future

Aussie Mine report 2018

Overall, the last 12 months have been positive for mid-tier miners. However upon closer inspection and analysis, there are a number of challenges mining leaders should be focusing on to be future fit and position themselves for long-term growth.

This year mining leaders are having to navigate their organisation through a world of two extremes, one where where;

  • Investor confidence has returned (market cap surged 28% to $58.7 billion)
  • EBITDA margins continue at near record high levels at 31%
  • Revenues have increased 13%
  • Capital Expenditure is up 32%

But…

  • Operating costs continue to climb 10% - moving more in line with revenue
  • Impairments are up 56%
  • Gold grades have reduced > 25% over the last two years
  • Workforce challenges have reached crisis point

This year's report provides a deep dive analysis of the issues that are having most impact on this groups success.

Download the report

Key insights

Productivity – time for new ways of thinking

Deals are becoming increasingly challenging, resulting in many mining companies looking to brownfield expansion of existing operations or capital investment in equipment to improve productivity. The logic here is that growth or renewal of existing operations is the ‘silver bullet’ to improved mining and site productivity.

An internal focus isn't the be all and end all that mining leaders are hoping for - and productivity numbers paint a clear picture of this being the case. So what then, can miners do to improve productivity?

Read more

Building a future fit workforce

The war for talent is well and truly on the agenda; the need for mid-tier miners to build tomorrow's workforce remains unabated, but future supply is far from where it needs to be.

While traditional mining roles will continue to remain relevant, demand for digitally skilled talent (including AI, robotics, data analytics and mechatronics) will mean mining organisations aren't simply competing against each other for top talent, they're up against far more appealing businesses like the Googles of the world.

Read more

 

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Chris Dodd
Partner - Assurance, Mining and Australia's Future Prosperity, PwC Australia
Tel: +61 3 8603 3130
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Anthony Hodge
Partner, PwC Australia
Tel: +61 (3) 8603 1759
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John O'Donoghue
Partner, PwC Australia
Tel: +61 3 8603 3067
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Andrew Forman
Partner, PwC Australia
Tel: +61 8 8218 7401
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Wim Blom
Partner, PwC Australia
Tel: +61 7 3257 5236
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Marc Upcroft
Partner, PwC Australia
Tel: +61 2 8266 1333
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