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.
ORLANDO, Feb. 25, 2013 /CNW/ – Ritchie Bros. Auctioneers (NYSE and TSX: RBA) held the world’s largest heavy equipment auction for 2013 in Orlando, Florida last week (February 18 – 23, 2013) selling 9,400+ items for more than US$176 million. The six-day auction set a new Company record for online sales as online buyers generated more than US$53 million in gross auction proceeds or 31 per cent of total gross auction proceeds generated in last week’s auction. Close to 8,300 bidders registered for the six-day, unreserved public auction from 80 countries, which featured equipment from more than 780 sellers. Every item in the six-day auction was sold to the highest bidder, regardless of price—without minimum bids or reserve prices.
“Where else can you go and liquidate an entire fleet of equipment worth millions of dollars in one week?” said Frank Fowler, Senior Vice President and Director of Used Sales for Florida-based Ring Power Corporation—a long-time buyer and seller with Ritchie Bros. “We sold a selection of heavy mining and construction equipment at this year’s February Ritchie Bros. auction here in Orlando. As an equipment dealer, the February Ritchie Bros. auction in Orlando gives us an opportunity to turn over equipment that is sitting in the back of our lot, idle and not being sold—and we do this fast and for the best value possible with the help of Ritchie Bros. This year we achieved strong values for the sale of our equipment, mainly due to the ability of Ritchie Bros. to reach buyers from all over the world—and create a competitive bidding environment with local bidders from every corner of the U.S.”
Close to 8,300 registered bidders from 80 countries, including 50 U.S. states, all Canadian provinces and one territory, participated both in person and online. More than US$38 million was purchased by buyers in Florida while more than US$137 million (or 78%) was sold to buyers located outside the state of Florida, with more than US$58 million (or 33%) of that amount being sold to buyers outside the country. Items in the auction were sold for more than 780 sellers. Items sold include a 2012 Grove RT890 90-ton 4x4x4 rough terrain crane that sold for US$725,000 and more than forty 2008 International ProStar and 2007 International 9400I trucks from Walmart’s professionally-maintained fleet.
“The selection of equipment at the Ritchie Bros. February Orlando auction is second to none,” said Atif Sultan, Owner of Maryland-based Imran Equipment Export. “I’ve participated at Ritchie Bros. auctions all around the U.S., Europe, the Middle East and Japan. It is the selection of equipment and unreserved policy that keeps me coming back to them. And, when speaking of good selection, there is nothing in the world like the selection that can be found at this Orlando auction!”
“It has been another big February week for us here in Orlando,” said Steve Kriebel, Regional Sales Manager, Ritchie Bros. Auctioneers. “We welcomed bidders from across the nation and those who traveled from around the world to compete for one of the world’s largest selections of heavy equipment. Prices were particularly strong for the smaller heavy construction items as well as one of the nicest selections of cranes that we’ve ever sold in our yard here in Orlando. Having now kicked off our 2013 Orlando auction season we look forward to building for our next Orlando auction on May 16, 2013.”
A new Company record for gross auction proceeds generated by online buyers was set at this year’s February Orlando auction. More than 3,900 of the registered bidders participated online using the Ritchie Bros. real-time online bidding service available at www.rbauction.com and purchased more than US$53 million of equipment. Internet bidders were winner or runner up bidder on 51 percent of the lots available online.
AUCTION QUICK FACTS: ORLANDO, FL – FEBRUARY 18 – 23, 2013
There are more than 115 auctions listed in the upcoming Ritchie Bros. auction calendar. For a complete list of upcoming Ritchie Bros. auctions around the world, visit www.rbauction.com.
