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.
German potash maker K+S Group is off 4.7% to €34.22 after announcing in its 3Q that it is having trouble closing its customers.
“[The] continuing absence of contract conclusions by North American and Russian producers with Chinese and Indian customers led to the capacities not being fully utilised, particularly in North America and Russia,” wrote the company.
“Against this backdrop, the international prices for potassium chloride came under pressure towards the end of the third quarter, but overall were moderately above those of the same quarter of the previous year.”
K+S Group’s quarterly revenues were up 7% to €916.6 million but operating earnings were €156.7 million, %14 below the previous year.
The company said the revenue expectation was at €3.9 billion, the lower end of the previously quantified range between €3.9 billion to €4.2 billion.
