Mine 2015: The Gloves Are Off
Annually PwC conducts a review of global trends in the mining industry which includes a detailed financial analysis of the Top 40 mining companies globally by market capitalisation.
PwC's 2015 Mine report, subtitled "The gloves are off" found that the global mining industry’s fight for value and free cash flow has descended into a brawl, after 2014 saw the world’s 40 largest miners ramp up production, slash capital spending and rein in costs. In summary the key findings were:
- Overall market values plummet US$156 billion in 2014
- Free cash flow increased to US$24 billion; but net profit down 9 percent
- Government intervention, shareholder activism, internal industry conflict on the rise
In this short video, PwC's WA Mining Partners discuss the issues raised in the Mine report in an Australian context including the deals environment, tax transparency and the outlook for our local industry.
On a positive note for the industry, you may also be interested in the outcome of the John Holland case which was recently handed down. The case resulted in positive outcome for the taxpayer in connection with their liability to Fringe Benefits Tax on flights for employees to non-remote work sites. For more information on this case please visit: www.pwc.com.au/tax/taxtalk/assets/alerts/TaxTalk-Alert-FIFO-workers-Jun15.pdf