Value Creation in Mining: Three Steps to Win Back Investors

Since 2010, the mining sector has experienced a sharp drop in total shareholder return (TSR), leaving investors skeptical about its future. A price recovery in 2016 brought a sigh of relief from mining companies. But much remains to be done to win back investors’ confidence after a decade of subpar returns.

The downswing has hit companies hard, halving the overall sector’s market value. The Boston Consulting Group analyzed the performance of 55 leading mining companies from around the globe from 2005 through 2015. We found that these companies delivered a median annual TSR of just 5% during that period, lagging behind the S&P 500’s 7.3%.

To win back investors, management teams must take three steps:

Addressing Balance Sheet Concerns

Re-earning the Right to Grow

Developing a Compelling Path Forward

protected by reCaptcha

Subscribe to our Metals & Mining eAlert.

Metals & Mining