10 Most profitable mining companies based on first-half results: 2015
2015 is shaping up to be a rough year for mining companies. The first six-months have witnessed less than stellar results, with slumping commodity prices continuing to ravage profit margins for miners. While many experts believe the second half of 2015 will tell a different story, the numbers don’t lie.
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We break down the top 10 mining companies based off of 2015’s first-half net earnings.
10. Fortescue Metals Group - $331 million
The Australian miner’s net profit for the first half of 2015 was $331 million, down 81 percent compared to the previous year of $1.7 billion.
9. Alcoa - $335 million
Alcoa’s net income of $195 million in the first-quarter of 2015, combined with $140 million in the second quarter, gives the aluminum miner a first-half total of $335 million.
8. Newmont Mining - $361 million
Gold miner Newmont Mining has raked in $361 million in the first half of 2015, compared to $210 million the previous year.
7. Southern Copper – $577.1 million
Global mining company Southern Copper reported a net income of $577.1 million in the first half of 2015, down 12.6 percent from the previous year of $660.6 million.
6. ALROSA - $714 million
Russian diamond mining company ALROSA saw revenue grow 26 percent in the first half of 2015, with net profit hitting $714 million.
5. Rio Tinto - $806 million
Weak commodities prices have caused a whirlwind of havoc for Rio Tinto as the mining giant reported net earnings of $806 million in the first-half of 2015, a significant drop from the previous year’s net income of $4.4 billion.
4. Glencore - $882 million
Commodities trader and miner Glencore reported net earnings of $882 million in the first-half of the year, falling 56 percent from the same period in 2014.
3. Anglo American - $904 million
After posting a net income of $1.46 billion in last year’s first half, Anglo American reported a disappointing $904 million for the first half of 2015.
2. Norilsk Nickel - $1.49 billion
Norilsk Nickel has done well in 2015. The world’s largest mining company of nickel posted first-half net earnings of $1.49 billion, a three percent increase from the previous year.
1. BHP Billiton - $4.26 billion
Despite claiming the number one spot, BHP Billiton’s profits fell significantly in 2015. The world’s biggest miner saw a 47.4 percent slump in the first-half of 2015, compared to the previous corresponding period, which saw profits reach more than $8.1 billion.
Deloitte predicts industry transformation - Tracking the Trends 2019 report
Deloitte has published the eleventh edition of its annual report on the mining industry. Tracking the Trends identifies the top ten trends transforming the future of mining in 2019
The Deloitte report endeavours to provide the mining industry with insights it can leverage to support its continued quest for productivity, capital discipline, strategic development and sustainable growth.
Philip Hopwood, Deloitte’s Global Leader - Mining & Metals, commented: “It appears that the mining industry is poised for greater growth than it’s seen in a decade, but today’s market realities are very different than those of the past. We’re now dealing with geopolitical tensions in the form of trade wars and tariff concerns, as well as looming asset shortages. Rising commodity prices should fuel expansion, but could also result in a return of inflation and the costs that go with it, eventually eating into margins.
Disruption and volatility has become the new normal and the pace of change is outpacing our ability to adapt. This makes it imperative for mining companies to clarify how they plan to drive value into the future and how they intend to respond when prices inevitably drop again.”
Here are the key messages provided by the 2019 report:
- Disruption and volatilitymake it imperative for mining companies to clarify how they plan to drive value into the future and how they intend to respond when prices inevitably drop again. To thrive into the future, mining companies will need to challenge the status quo by soliciting a diversity of opinions and taking the risk to do things differently.
- Technology and artificial intelligence (AI) will play a key role, not only in helping companies envision future scenarios, but in identifying risks at an enterprise level and transforming the supply chain. Moreover, advances in finance platforms, sensor technology, autonomous vehicles, cloud- based solutions, and analytics are paving the way for the design of a digital mine.
- Understanding the needs and perceptions of people both inside and outside the organization will be critical. Companies must build a more diverse workplace and address succession planning, while fostering loyalty and retention among existing employees. At the same time companies must do more outreach to local communities, governments, and consumers so they can be more transparent and receptive.
Top Ten Trends Transforming the Future of Mining:
- Rethinking mining strategy - Embedding the discipline to deliver measurable value across the cycle
- The frontier of analytics and artifcial intelligence- Moving up the maturity curve
- Managing risk in the digital era - Exploring a new approach to controls and risk management
- Digitizing the supply chain - Why innovation requires integration
- Driving sustainable shared social outcomes - Finding value beyond compliance
- Exploring the water-energy nexus - Making the case for a systematic approach
- Decoding capital projects - Learning from past mistakes
- Reimagining work, workers, and the workplace - A blueprint for the future
- Operationalising diversity and inclusion programs - From theory to practice
- Demanding provenance- EVs and battery minerals provoke the desire for provenance