Big mining companies saw stocks crushed last year and profits tumble

TORONTO – The world’s biggest mining companies saw their results crushed last year and their stock market values slashed in one of the toughest years in memory.

A report by PwC says the top 40 mining companies in the world saw their collective stock market value drop $280 billion, or 23 per cent, in 2013 as they booked $57 billion in writedowns, led by the gold miners.

Profits at the big firms combined to total $20 billion, the lowest level in a decade.

Gold miners were hammered especially hard last year as the price of gold dropped 27 per cent, its biggest plunge in more than 30 years.

The sector accounted for $110 billion of the drop in market capitalization and five gold companies fell out of the Top 40 in 2013.

Gold miners also accounted for $27 billion or nearly half of the impairment charges recorded by the top 40 companies.