Mining industry profits soar in 2017, finds PwC report

The net profit of the world’s top 40 mining companies surged by 126% last year according to a new report by global auditing firm PwC.

The Mine 2018 report found that the net profit of the world’s top miners increased to $US61 billion in 2017, levels of collective growth that are reminiscent of profit generated by companies during the mining boom era.

Revenue increased by 23% to $600 billion, while EBITDA rose 38% to $146 billion, and the good times are set to continue into 2018 for the major players, with the report forecasting net profit will rise to $76 billion next year.

Profits have been boosted by reduced capital expenditure (capex), with limited new projects in the pipeline pushing capex down to its lowest level since 2006. The broad application of cost-cutting methods and efficiency drives have also helped profit margins.

“The hard work has been done by these mining companies to cut costs, drive efficiency and keeping supply at sustainable levels,” said Chris Dodd, PwC’s Australia mining leader. “Everywhere we look people are saying, mining companies look profitable again,” he added.