[VIDEO] PwC's 2015 mine report: The Gloves Are Off
“The general outlook for the global metals and mining market remains subdued due to the combination of a slower rate of global economic growth, particularly in emerging markets, and signs of an oversupply of several commodities, most notably iron ore and coal,” said the report.
• Related content: Fading away: South Africa's mining industry falls out of top 40 mining list
“Lower crude oil prices and a stronger US dollar are proving beneficial for miners by helping to lower operating costs. The uneven global economic recovery and divergent monetary policies continue to create uncertainty around medium-term supply and demand across the mining industry.”
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.
The 12th annual report, which reviews the top trends in the global mining industry, includes a detailed financial analysis of the Top 40 mining companies globally by market capitalization. According to the report, the top 40 senior producers lost $156 billion during 2014 while the pace of mergers and acquisitions (M&A) came to a screeching halt. Key findings in the report include:
• Overall market values plummet $156 billion in 2014
• Free cash flow increased to $24 billion; but net profit down 9 percent
• Government intervention, shareholder activism, internal industry conflict on the rise
Albemarle profit beats expectations on rising lithium prices
Albemarle, the world’s largest producer of lithium, has posted a quarterly profit that easily beat Wall Street’s expectations on rising demand from the electric vehicle industry.
The company reported first-quarter net income of $95.7mn, or 84 cents per share, compared with $107.2mn, or $1.01 per share, in the year-ago period, reports Reuters.
Excluding one-time items, Albemarle earned $1.10 per share. By that measure, analysts expected earnings of 80 cents per share, according to IBES data from Refinitiv.
Shares of the Charlotte, North Carolina-based company have nearly tripled in the past year, closing on Wednesday at $167.15, up 3.1% on the day. The stock was flat in after-hours trading.
Albemarle said the outlook for lithium sales has improved since 2020, when the coronavirus pandemic forced the company to pause expansions and production in some regions. Prices for the white metal should improve for the rest of the year, the company forecast.
Albemarle is in the final stages of two projects to boost its lithium processing and expects to approve further expansion projects by June.
Weakness in Albemarle’s division that supplies crude oil refineries offset the surge in sales of lithium during the quarter. Albemarle is consulting with investors on the quarterly results.
In Janaury this year, Albermarle revealed it was expanding its lithium production facility at Silver Peak in Nevada. It will also begin a program to evaluate clays and other available Nevada resources for the commercial production of lithium, a critical mineral in green mobility, and comes as North American automotive manufacturers are looking to reorganise their supply chain for greater security and sustainability.