Commodity price increases accounted for more than half of the shareholder value generated by the mining sector from 1999 through 2009, but price increases do not account for the sharp variations in the performance of different companies within the sector, says a new report from The Boston Consulting Group. The report, Value Creation in Mining: More Than Commodity Prices, is being published today.
BCG’s analysis shows that three key levers explain the superior performance of the most successful companies: production growth, capital management and discipline, and increases in valuation multiples. The top 10 value creators from the sample of 37 major mining companies averaged annual total shareholder return of 34 percent—twice the TSR of the full sample.
See full Press Release.
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