The past few years have been disastrous for mining companies in the Western World, says a report published by British-based Metals and Minerals Research Services.
Between 1988 and 1992, nominal US dollar base metal prices declined by an average of 35%, gold prices dropped by 21%, platinum prices fell by 32% and silver prices were down 40%, the firm notes in its 1993 World Minerals Industry Financial Review. Simultaneously, base metal consumption rose by 5.5% and production was up 6.5%.
However, the report’s figures indicate a marked fall in operating revenue for companies that mine non-ferrous metals.
The mining industry achieved its highest operating revenue in 1989, because new flotations were then still more important than consolidations. The 1990 decline of 1.5% was fairly modest, but turnover then fell by 4.1% in 1991 and by 2.8% in 1992. In nominal terms, the report states, the 1992 total was on a par only with that of 1988. Simultaneously, aggregate operating costs were up by almost 15%.
The report incorporates results of 184 separate mining companies. For more information, write to Metals and Minerals Research Services, 2-4 Henry St., Bath, Avon BA1 1JT, England.
Be the first to comment on "Difficult times for producers"