Tuesday, June 15, 2010

How profitable? Possum on why we can't stop mining.

His incredible piece is here. Read and wonder.

Some highlights:

"In 2008/09, the Australian mining industry had a EBITDA/Revenue ratio of 43% while the worlds largest forty mining companies had a comparable estimate of 30%...

"Our profits and our resources are simply too good an opportunity to pass up – even if the profit margins involved in Australia are seriously reduced. When the noisy miners say that their capital is mobile, they are dead right – their capital is indeed mobile, but in exactly the same way that every other mining firm’s capital is mobile, including the capital of the worlds largest forty miners...

"Big Dirt walking away from Australian investment will be their loss, not ours – because someone else will simply take their place.

Big Dirt – welcome to capitalism."

Related Posts

. "Resource companies will leave Australia only when there are no more minerals and energy to extract"

. Wednesday column: No way back, no way out - the miners don't want a deal

. At last - some good communication from the government about the RSPT