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, FL, Feb. 24, 2014 /CNW/ – Last week (February 17 – 22, 2014), Ritchie Bros. Auctioneers (NYSE and TSX: RBA) held the world’s largest heavy equipment auction of 2014 in Orlando, Florida selling 8,800+ items for more than US$166 million. The six-day unreserved public auction set new Company records for online sales, with online buyers generating more than US$54 million in gross auction proceeds or 33 percent of total gross auction proceeds. Additional records broken at last week’s auction include number of online registered bidders (4,400+), number of online buyers (1,000+), and a new Orlando, FL permanent auction site record of sellers (830+). Every item in the six-day, unreserved public auction was sold to the highest bidder, regardless of price—without minimum bids or reserve prices.
“Our February auction in Orlando continues to be our Company’s largest auction each year and this year is no different,” said Peter Blake, Ritchie Bros. CEO. “Equipment owners from around the world and most notably from all across the eastern seaboard of the U.S. send their equipment to our Orlando auction because we provide ease, confidence and the world’s biggest auction in which to sell their assets for the highest possible returns. Due to the severe winter weather that hit the northeastern U.S. in recent weeks, many of the sellers from the region who normally participate in the auction were unable to free up equipment from their job sites to add to last week’s auction. We also noticed a lower volume of cranes in this year’s inventory due to higher construction activity in the non-residential market. However, simultaneously we saw a more diverse and larger selection of equipment from the energy and transportation equipment categories than previous years. This is an early reflection of our focused strategy to diversify and grow our volume in other sectors, in addition to heavy construction.”
More than 830 sellers sold their equipment at this year’s Ritchie Bros. Orlando, FL February auction. Florida-based Ring Power Corporation, a long-time buyer and seller with Ritchie Bros., sold a selection of more than 140 heavy construction and rental-type items during last week’s auction.
“We have a long and collaborative relationship with Ritchie Bros. and their February auction here in Orlando is one of our largest ventures together,” said Dennis Ryan, Vice President and Used Equipment Manager, Ring Power Corporation. “We sold a large selection of construction and rental gear this year and prices exceeded our expectations. While at the auction, we saw bids coming in from Latin America, the Middle East and all over the United States for our gear. Ritchie Bros. has the ability like no other to reach buyers from all around the world.”
More than 8,640 registered bidders from 84 countries, including all 50 U.S. states, all 10 Canadian provinces and one territory, participated both in person and online. More than US$29 million was purchased by buyers from the state of Florida while more than US$137 million (or 82%) was sold to buyers located outside the state, with more than US$48 million (or 29%) being sold to buyers outside the country. Buyers participated from as far away as the United Arab Emirates, Guyana, Italy, Nigeria, Russia and Qatar.
“The selection is like something I’ve never seen before – the yard is huge and it is completely packed with equipment,” said Oscar Ruiz, a first-time bidder and private contractor from Colombia. “I will definitely attend the next Ritchie Bros. Orlando auction – if I need it, I know I will find it here.”
Katherine Garibello, President of Florida-based contractor AG Design & Services Corp., which specializes in remodeling and structural maintenance, was also a first-time buyer at this year’s Ritchie Bros. February Orlando auction. She noted: “The logistical organization, professionalism and friendliness of every staff member of this enormous operation is what helped us acquire the equipment we need for our next remodeling project.”
“We have started another strong year at our February auction here in Florida,” said Steve Kriebel, Regional Sales Manager, Ritchie Bros. Auctioneers. “We saw strong prices in many areas, more specifically in the backhoe, aerial, truck and trailer, motor grader, and bulldozer categories. Even though our inventory count was slightly lower than in recent years, average sale prices were higher. Additionally, we sold 80 percent more one-to-three-year-old equipment items in our core equipment categories, including wheel loaders, bull dozers, rock trucks, excavators, motor graders and forklifts. We look forward to continuing to serve our customers all around the world at our upcoming Florida auctions in 2014.”
AUCTION QUICK FACTS: ORLANDO, FL – FEBRUARY 17 – 22, 2014
The next Ritchie Bros. Orlando, FL unreserved public auction is scheduled for May 15, 2014. Equipment owners interested in selling their equipment can contact the auction site at +1.863.420.9919.
There are more than 130 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.
