- The overall market capitalization of the world's 40 biggest miners has been cut in half over four years, sinking 16% Y/Y to $791B at the end of 2014, according to the latest annual survey by accounting firm PricewaterhouseCoopers.
- PwC said the top 40 miners' return on capital employed fell to its lowest level since at least 2005, and few companies, including Randgold Resources (NYSE:GOLD) and Norlisk Nickel (OTCPK:NILSY), topped 15%.
- The top 40's dividend coverage was just 1.1x, a practice PwC says "isn’t sustainable in the long term... dividends paid in 2014 consumed all available cash, reducing the balance sheet flexibility of miners."
- The consequence of the payouts and the falling market cap is that miners’ dividend yield rose to 5%, the highest in a decade.
- ETFs: GDX, NUGT, GGN, DUST, SIL, GLDX, XME, COPX, SGDM, BCX, ASA, SLVP, CU, RING, HAP, IRV, PSAU, MXI, GNR, TGLDX, PICK