Unrelenting Disconnect--Mining shares plunge despite record profit in 2011 - PwC

摘要

The global mining industry is facing a growing disconnect with a significant decline in market capitalisation, an increase in commodity prices and a lack of shareholder confidence, Pricewater-houseCoopers (PwC) said last week.In South Africa, rising input costs such as electricity, labour and fuel, as well as the search for and retention of talent, and their accompanying trials, further exacerbate these challenges.Although the mining industry started the 2011 year strongly, with the world's 40 largest miners reaching record profits, company stocks significantly underperformed in the broader equity markets, losing value by year-end as a result of continuing fears stemming from the recent economic uncertainty, PwC stated in its ninth yearly review of global trends in the mining industry, titled Mine: The Growing Disconnect.