[miningmx.com] – THE world’s mining sector was heading into another year of subdued metals pricing, said BDLive citing a report by auditing firm, EY. But at least mining firms had reduced overall net debt, a study of 88 mining firms said.
“A lot of people are starting to shore up their balance sheets . the majors in particular, are re-balancing their portfolios and there’s potentially a wave of consolidation coming,” said EY’s Miguel Zweig, the global sector leader for mining and metals.
Net debt levels roughly doubled to about $350bn since 2009 as the global financial crisis set in, and, while earnings exceeded debt levels in 2010 and 2011, the picture rapidly changed from 2012 as earnings stagnated and then dipped last year.
There was also likely to be more merger and acquisition activity as companies sell assets to shore up their balance sheets next year, EY said.
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