GLG News by Australian & South Pacific GAAP Academic Specialists

Reduced production output, postponed or cancelled capital and exploration expenditures, closure of marginal mine sites and impairment charges are common scenarios in mining companies during bear markets in mineral commodities.  The recent announcement by Freeport-McMoran (NYSE:FCX) that it intends...

It is refreshing to see a merger of mining companies that will truly create added value through synergies in contrast to many mergers that appear to be not much more than empire-building exercises.  The merger of Katanga Mining Limited and Nikanor PLC will result in the consolidation...

Harmony Gold’s recent accident that trapped 3,200 gold miners for a day or more points to the increasingly sensitive "social license" the Gold Mining Industry has to operate in various countries around the world. This license is only granted to if they are perceived to be responsible citizens and to...

The Yamaha Gold, Meridian Gold and Northern Orion Resources merger does not result in significant synergies that can help the combined company to reduce production costs over the long-term.  The best mergers in the gold mining business result in unlocking long-term synergies by combining...

Rio Tinto recently announced that its net profit fell 14% for the first half of 2007 compared to a year earlier despite an increase of 15% in gross revenue.  This announcement demonstates the challenges mining producers face during sustained mineral commodity market price upswings to contain their...

Newmont's announcement yesterday that it recorded a $531 million charge for settlement of its remaining gold hedge book and a $1.7 million impairment charge to discontinue its Merchant Banking Segment point to problematic accounting issues for the Mining Industry. Newmont had applied the "normal purchases...

As global demand for mineral commodities like copper, nickle, gold and aluminum continues, major mining companies are venturing into under-developed countries to find and exploit new world-class ore deposits.  Major ore deposits are increasingly difficult to find in stable and/or developed...