Mining faces "crisis in confidence" says PwC
Mining faces “crisis in confidence” says PwCPwC's latest report on mining trends - the 10th review of global trends in the mining industry by the multinational professional services firm – has revealed that the industry had entered a period where there is a "crisis in confidence" about cost controls, delivery and resource nationalisation.
In a survey of the world's top 40 mining companies PwC said the net profits had fallen 49 percent last year, while market capitalisation had been severely battered in the first four months of this year.
"2013 will be all about asset rationalisation and deal activity will be driven mainly by senior miners looking to divest non-core assets and looking to de-risk projects through joint ventures," Tim Goldsmith, PwC's global mining leader, said, adding, "Given how far the mining industry has fallen in the first four months of this year, it will be challenging for the industry to fully rebound in the remainder of 2013."
PwC warned that companies with financial constraints have been "forced to get creative" when it came to raising money to fund acquisitions or advance projects.
It expected that to continue well into 2013.
To see the full report click here.
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