Mining companies boost cash holdings

By Pau Gan | 10 March 2017

Mining companies were flush at the end of 2016 in terms of their cash balances, giving the mining industry a confident outlook for the current year. The 617 ASX- and London-listed companies ended the year with cash balances totaling US$42.92 billion, marking a 15% increase compared with the US$37.32 billion aggregated cash holdings at the end of June 2016. On a quarterly basis, the 601 NYSE-, Toronto- and TSX-V-listed companies for which such a comparison can be made reported a 34% increase between the third and fourth quarters of last year, with US$20.64 billion in total cash holdings at the end of the third quarter and US$27.67 billion at the end of the fourth quarter.
cash-holdings-of-mining-companies


The SNL Metals & Mining database has compiled cash holdings for companies on the Australian, London, New York and Toronto stock exchanges for the final three quarters of 2016. The third quarter saw a 7% increase in combined cash holdings of the companies on these stock exchanges, compared with the same group of companies at the end of the previous quarter. However, a majority of the Australian and London-based producers only report cash holdings on a biannual basis, and thus there was no comparable third-quarter data.



DOWNLOAD REPORT

Praesent porttitor malesuada ornare. Etiam pellentesque vitae risus in elementum. Vivamus ex sem, maximus in ligula vitae, dictum luctus felis. Etiam et rutrum mauris, congue hendrerit nisi. Aenean lorem sem, consequat sit amet diam ut, pellentesque aliquet ante. Ut egestas massa mi, nec condimentum ipsum suscipit non. Interdum et malesuada fames ac ante ipsum primis in faucibus.

Praesent porttitor malesuada ornare. Etiam pellentesque vitae risus in elementum. Vivamus ex sem, maximus in ligula vitae, dictum luctus felis. Etiam et rutrum mauris, congue hendrerit nisi. Aenean lorem sem, consequat sit amet diam ut, pellentesque aliquet ante. Ut egestas massa mi, nec condimentum ipsum suscipit non. Interdum et malesuada fames ac ante ipsum primis in faucibus.

Form Header

mining companies cash holdings

The combined year-end cash holdings of the NYSE-listed companies increased by a striking 55% compared with the equivalent end-September balance. One key factor for this positive change is the near tenfold quarter-on-quarter increase in the cash balance of Albemarle. Meanwhile, comparing Albemarle's total cash holdings at the end of December quarters in 2016 and 2015, the company showed an almost elevenfold improvement to US$2.27 billion in cash and cash equivalents. The increase was largely generated by the net proceeds from the company's sale of Albemarle's Chemetall Surface Treatment business to BASF SE.


To read the full analysis, please complete the form on your right.





Copyright © 2017 by S&P Global Market Intelligence, a division of S&P Global Inc. All rights reserved. No content may be reproduced or distributed without the prior written permission of S&P Global Market Intelligence or its affiliates. The content is provided on an “as is” basis.
 
Facebook LinkedIn You Tube

Copyright © S&P Global Market Intelligence Inc. All rights reserved.
Privacy Policy | Cookie Notice | Terms of Use | Legal Disclaimers