Jan 30, 2013

Global mining giants fail to hit paydirt, more write-downs

Mining companies around the world are announcing billions of dollars worth of write-downs. Here's a list of the biggest cuts.

Glenn Dyer ā€” <em>Crikey</em> business and media commentator

Glenn Dyer

Crikey business and media commentator

The list of big mining companies writing down the value of assets and projects continued to grow overnight. Anglo American and Peabody Energy revealed almost $US5 billion in cuts, some of which apply in Australia.

The cuts takes the total of asset value reductions announced in the past year to close to $US50 billion as mining companies, especially the world’s largest, finally bring to book the costs of their headlong rush to buy and develop projects in gold, coal, iron ore, LNG and US gas and oil.

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One thought on “Global mining giants fail to hit paydirt, more write-downs

  1. Dogs breakfast

    Blimey, a stable government, rule of law and a meagre carbon tax does look inviting again, after all those terrible ‘sovereign risk’ assessments seem to be awry.

    Wasn’t it just the other day that either Glenn Dyer or one of his colleagues reminded us that takeovers in the main are value destroying propositions.

    Of course they are, unless you are selling into a hot market, in which case you got out at just the right time.

    I am constantly intrigued at the way that Boards and management, and often analysts, view being taken over as a failure. From my perspective it appears to be a huge win.

    But then you would have to be looking at these things with a rational eye rather than the purely egotistical mentality.

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