The hottest metal mining industry in the world

2022-08-08
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The global metal mining industry braved the wind and waves

the past 2006 was another bumper year for the global metal mining industry. The net profit increased by 64% over the previous year, an increase of nearly 15 times over 2002. Compared with 26% in 2005, the return on net assets (ROE) also reached 33%. The net cash inflow from operating activities reached 767. The higher pressure holding pressure and mold cavity pressure made the products in the mold cavity dense and the shrinkage reduced. In particular, the pressure in the pressure holding stage had a greater impact on the shrinkage rate of products, US $100 million, an increase of 40% over 2005. Cash used for the company's natural growth and investment activities increased by 83%

in 2006, many major events occurred in the global mining industry. M & A activities have continued to grow rapidly since 2005, and the acquisition of new assets is still the basis for the consolidation and expansion of cash rich companies. Many large transactions were completed in 2006, the most prominent being the overseas acquisition of Inco by Brazilian iron ore mining giant vale (CVRD). The rise of Asia is also noteworthy. At present, four of the top 40 companies in the world are headquartered in Asia, while the number was zero in 2003. Mergers and acquisitions not only greatly changed the list of top 40 companies - one third of the top 40 companies in the past disappeared from the list - but also greatly improved the value of the industry. According to the current market value, the company that ranked No. 40 in 2006 can rank No. 19 in 2003. The minimum market value has increased by 2.9 times, and the maximum market value has increased by 2.2 times. Among the top four companies in 2006, the net profit growth of each company was higher than the sum of the top 40 companies in 2002

although the global metal ore production was very high in 2006, the demand was still greater than the supply, which drove the commodity prices to continue to rise. China is the main source of unprecedented demand for metal mining. To some extent, investment in the 1990s brought about a steadily growing demand relationship, making commodity prices likely to remain high

in the long run, China will continue to be the continuous driving force of the market. At home, China is opening the metal mining market to foreign investors. Many regions, especially western China, are being exploited and have great potential. At the same time, Chinese domestic companies actively seek overseas mining resources to support China's development. This can be seen from the overseas mergers and acquisitions of Chinalco (49.03,1.68,3.55%), China Minmetals Group and Zijin Mining Group in 2006. Due to the growth of demand in China, the base metal market has become tight, and small changes in supply, demand or inventory will lead to sharp fluctuations in international market prices

hedge funds have had a significant impact on the global mining industry in the past two years by engaging in metal trading and causing fluctuations in commodity prices. Due to high cash flow and strong liquidity of the fund, this impact will continue to grow. The biggest challenge is the impact of hedge funds on metal prices in cyclical changes. In addition, there are increasing signs that private equity funds are also very interested in sharing profits from the industry

industry overview

in 2006, the total market value of global mining industry increased strongly by 22%, reaching US $962billion. The market value of the top four companies continues to dominate the entire industry, including BHP Billiton (hpbilliton, which dominates the global BDO market in Asia Pacific region b), Rio Tinto mining group, Anglo American in South Africa and CVRD. Among them, Vale grew the fastest, reaching 56%, mainly due to the positive promotion brought by the acquisition of Inco. Mainly due to the growth of global iron ore prices, Rio Tinto and vale both led BHP Billiton in annual growth. Anglo American's growth was mainly due to its platinum products. Continuing the trend since 2005, the market value of the top four companies decreased slightly from 38% to 35%

among the top ten companies by market value, Xstrata, Switzerland, rose from No. 9 to No. 5 due to the expected profits on nickel and copper brought by the acquisition of Falconbridge in Canada. Phelpsdodge, an American copper producer, entered the top 10 for the first time, with a market value of US $24.4 billion, an increase of 67%. The company reached an acquisition agreement with Freeport McMoRan copper and gold company of the United States in November 2006, and the latter completed its acquisition in March 2007. Ghana Newmont gold mine company did not appear in the top ten list, and its position fell from No. 5 to No. 12

In

, compared with the S & P 500 index and Dow Jones index, the HSBC Global Mining index performed poorly. However, since 2003, the increase in commodity prices has significantly increased the HSBC Global Mining index. In May, 2006, the HSBC index peaked and then fell back. Since January 1st, 2007, the HSBC index has continued to rise, far ahead of other indexes

in 2006, the annual average price of various metal commodities changed significantly. Copper and nickel, in particular, experienced a similar surge as iron ore in 2005. In 2006, the prices of some other metals also increased significantly, such as silver increased by 58%, aluminum increased by 34%, cobalt increased by 84%, uranium increased by 106%, and zinc increased by 138%. The rise in zinc prices also made zinifex, an Australian lead and zinc miner, enter the top 40 for the first time. However, there are exceptions. Despite strong overall market demand, the price negotiations in 2006 led to a moderate decline in coal prices. After the sharp rise in 2005, the molybdenum price remained at a relatively low level in 2006, but it was still much higher than the historical long-term average price

in 2006, the average total shareholder return of the top 40 companies surveyed by PricewaterhouseCoopers was 55%, and in 2005, the figure was 63%, which can also be manually operated. The shareholder return of these 40 companies ranged from the lowest -15% to the highest 220%. Six companies exceeded 100%, and only three companies were negative

when reserves are no longer reserves

at present, there is no unified definition of reserves worldwide, which brings difficulties to our statistics and comparison. This paper preferentially adopts the definition standard of the joint international reserve Reporting Standards Committee, which is consistent with the international mining and Metals Association (ICMM). In addition, considering the different degree of information disclosure and emphasis on details of each company, the reserve data of each miner is lack of comparability. In other words, all the data information in this paper is accurate, but they cannot be compared with each other

limited by the information published by the top 40 companies, we cannot obtain accurate data on the total reserves of various metals. This paper selects the companies with valid data, and the statistical results of reserves in 2006 and 2005 are shown in Table 1

in 2006, the total gold reserves increased by 96million ounces. It mainly includes: (1) the frequent mergers and acquisitions of Barrick, Goldcorp and harmony in South Africa have brought 64million ounces; (2) The 44million ounces of reserves of Russia's polar gold company (polys) increased, and the 22million ounces that were not included in the opening balance due to the separation of polar gold from Russia's norilsknickel company in March 2006; (3) Eliminate production losses of 34million ounces

platinum reserves increased by 13million ounces, mainly due to angloplatinum turning its 18million ounces of platinum resources into reserves, of which 5million ounces were used for production. The increase in demand for platinum group metals led to a 10% increase in the output of these platinum companies. The price rise has also led many ambitious new entrants to the forefront. He promised to deal with the problems raised by customers in the province within 24 (4) 8 hours. Their main exploration and exploitation resources were concentrated in bushveldcomplex area in South Africa. This will help to increase reserves in the future. The recent acquisition of africanplatinum by impala in South Africa and the acquisition of afriore by lonmin, the world's third-largest platinum producer, are also conducive to increasing reserves. However, the new mining rights act in South Africa is posing a challenge to the British and American platinum industry, forcing it to either use resources to accelerate development or hand over resources to others

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