The following is part of an article from Infomine.
What's a miner to do with all this cash?
"Despite tempting times for miners to resume aggressive acquisitions amid better performance and a pickup in commodities prices since 2017, mining companies will continue their restraint over capital and supply over the coming years," Fitch's report reads.
According to the market researcher, while healthier balance sheets have encouraged a slight increase in CapEx budgets since 2017, the increase has been modest.
The analysis presents Vale's plans as an example. The iron ore miner has budgeted to spend $4.7 billion per year in 2019 and 2020, while back in 2013 the company spent $13.3 billion.
Rio Tinto is on the same boat with plans to spend $6 billion in 2019 and $6.5 billion in 2020 compared to $13 billion in 2013.
Freeport-McMoRan, on the other hand, spent $5.3 billion in 2013 and expects to spend only $2.3 billion per year in the next two years.
For Fitch, big miners are not planning to increase production either, even though prices of most commodities are predicted to go up over the coming years.
"For instance, Rio Tinto has adopted a 'value over volume' approach and expects minimal increases in production in 2019. Anglo American's production guidance for the years ahead shows most of its output levels for the coming years at or minimally above FY2018 levels. Glencore is a step further, cutting its 2019 production targets for all commodities," the report reads
