The main assets of a mining company are its orebodies; the second are the people who find and use them.
The graphs in Figure 1 were derived from a paper by Rob Macdonald of Rothschild Australia presented to The AusIMM Centenary Conference in Adelaide earlier this year. They show that the value of the industry on the Australian Stock Exchange halved over the past decade, despite the re-investment of capital equivalent to its full market capitalisation. Why is this so? The average dividend yields for the ASX Mining Index was never above five per cent during that period and barely averaged 2.5 per cent. Why then is $Ai million capital re-investment per employee since 1960 not enough to generate a rate of return to investors better than lousy bank interest? Do the investing public no longer regard our industry's assets to be world class?