Mining profits reach $230 billion a year, topped only by oil & gas, pharma

Mining companies adopted a more conservative approach after the 2015-16 market downturn to adjust to more volatile commodity prices, focusing on cost cutting, productivity and expanding liquidity says a new report by Moody’s Investor Service, a ratings agency. 

Moody’s says earnings for the 130 rated issuers in the industry have improved since the mid-decade downturn, with EBITDA for 12 months through September 2020 totaling $230 billion, the third-largest among the global sectors, after oil & gas and pharmaceuticals. 

Debts for the industry total $670 billion but the debt-to-earnings ratio has been cut substantially since 2015, going from 3.8 at the end of the downcycle to 2.7 for the twelve months to end September 2020.