Investors are turning away from the mining sector because they have lost confidence in company CEOs, cost controls, commodity prices and resource nationalism, PwC has warned.
In its 10th annual global mining industry report, released today, PwC highlighted a 49% drop in net profit at the world’s 40 biggest miners as costs rose 9%.
Return on capital employed tumbled below the global financial crisis low of 9% for the first time in almost a decade.
Performance issues appeared to have sparked leadership changes in many of the top 40 firms, with 5 of the top 10 companies appointing a new CEO in the past year.
New CEOs were 54 years old on average – 5 years older than their predecessors – and tended to have been recruited from an operational background, PwC reported.
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