Australia's March quarter national accounts showed capitalised spending within the resources industry of $98.9 billion over the previous 12 months taking the...
John Robertson
PortfolioDirect
Australia's March quarter national accounts showed capitalised spending within the resources industry of $98.9 billion over the previous 12 months taking the total industry capital spending over the prior 15 years to $549.1 billion. Separately, the Australian Bureau of Statistics has also reported that mining industry profits before tax for the 12 months was $57.5 billon, representing only a modest return on the investments that have been made. The chart shows the return on the industry's trailing 15 year investment spending since 1986. The industry will cut back on spending as it attempts to stabilise the return on investment. Even with an immediate halving in capital spending, resource industry profits (i.e. volumes in the absence of any rise in commodity prices) would have to grow by at least 10% a year for the industry to stabilise the rate of return on the capital employed.
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John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business strategist and investment market professional for over 30 years after starting his career as a Commonwealth Treasury economist in Canberra. Since being Australia's top-rated commodities analyst and chief economist at one of Australia' leading stockbroking firms, he has advised companies across the mining, consumer products, IT and biotech sectors on their equity market relations. He leads the firm's investment evaluation and security structuring activities on behalf of the Australian Small Scale Offerings Board (ASSOB), the world's first equity 'crowdfunding' investment platform. John Robertson discusses the interaction of mining and investment markets in his weekly 'From the Capital' column in Mining Journal.
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
John Robertson
PortfolioDirect
John Robertson is Chief Investment Strategist for PortfolioDirect a provider of resource sector investment stock ratings and portfolio strategies for mining and oil and gas investors. He has worked as a policy economist, corporate business...
Expertise
No areas of expertise
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