Collectively, Amplats‚ Kumba and Exxaro lose R40b in market value
Independent Online reports that according to a report from professional services firm PwC, a tough year lies ahead for the mining industry in the wake of recent industrial action‚ mounting cost pressure and shrinking profit margins. While the 2009-2011 period was characterised by a recovery in overall commodity prices from the lows of the 2008 financial crisis‚ the reports says, 2012 saw a slowdown in this recovery with gold the only commodity gaining value.
A weakening rand over the period managed to shield the South African mining industry from the decline‚ with prices remaining relatively flat. However‚ the reports says, flat prices will not support the industry's significantly increased cost base. The 2012 financial year saw the country's top 39 mining companies shed all the gains made since the 2008 financial crisis.
Of the top 10 companies‚ six posted declines with Anglo Platinum‚ Kumba Iron Ore and Exxaro Resources collectively losing R40 billion in market value, Independent Online says.
Read the full article on www.iol.co.za.