Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
As we approach MINExpo, we cannot help remembering the last event in 2008 when we went in with a boom in the mining industry, came out thinking how great the mining industry was and within a few days were hit by the start of the Global Financial Crisis. But Cat remains confident, with Chairman and Chief Executive Officer Doug Oberhelman saying ”Caterpillar’s success in 2012 is occurring despite US construction activity that remains depressed and well below the prior peak, the problems facing Eurozone economies and economic concerns in China. While we’re expecting a record year in 2012, we understand the world is facing economic challenges, and if it becomes necessary, we are prepared to act quickly as we did in late 2008 and 2009. While we’re prepared, the good news is, this doesn’t feel like 2008. Interest rates are low, central banks are prepared to inject more liquidity if needed, and housing is coming off lows, not a peak, and seems to be improving.” (more…)
