Mining sector outlook improves despite losses and brexit – bbc news great britain pound currency

Mining sector outlook improves despite losses and brexit – bbc news great britain pound currency With mining company BHP Billiton reporting a record loss for the past year, you could be forgiven for thinking it was all doom and gloom for the sector. Currency gbp pln But all is not as it seems. In fact, data from the FTSE 100 shows quite the opposite. What is the currency of britain The seven mining companies account for close to 5.5% of the value of the index. “At the end of 2015 they accounted for around 2.5%, so they’ve more than doubled in a year, which is impressive,” says Jeremy Wrathall, mining team leader at Investec.

The reversal in the fortunes of the sector is shown clearly by diversified

mining company Anglo American’s experience. The FTSE 100 is made up of the largest 100 qualifying UK companies by full market value, and at one point Anglo was on the verge of being too small to remain a part of the list.

What currency does england use 2012 Funding expansions led to a build up of debt which proved almost too much to handle when commodity prices crashed. “There has been a dramatic turnaround in the industry since 2015,” says Mr Wrathall.

Currency rate of england pound “It’s now in relatively good shape whereas before we were seeing the likes of Anglo close to relegation.” Brexit Schmexit Mining companies have been badly hit by slowing growth in China and dropping commodity prices. One recent development that hasn’t hurt the industry is the UK’s referendum vote.

What currency is used in britain That is because the firms do not make their money in pounds – and have therefore benefitted from the ensuing weak pound. Tyler Broda, director of global mining research at RBC Capital Markets says the currency markets are certainly part of the mining industry’s success so far in 2016. “The sector is performing very well this year, they have 100% of revenues in US dollars so the weak pound has helped,” he says. The effect is clear to see. Currency gbp chf Since the vote on 23 June, share prices of mining companies have risen.

“For a UK investor searching for protection against pound weakness, looking for companies that earn in the dollar is a good idea,” says Edward Sterck, metals and mining research analyst at BMO Capital Markets. Currency for britain “They represent a safe haven, but that’s not restricted to mining companies.

” Yield winners Another bonus for investors in the sector, are the payouts being given to shareholders, known as dividends. What is currency of britain With interest rates as low as they are, the news that shareholders were paid over and above what a company’s dividend policy requires, as they were by BHP Billiton, has cheered investors.

“This is a notoriously volatile sector so it is high risk, but when the options are as dire as they are, mining comes into the view finder for those looking for a return,” says Wrathall. Precious metal prices have soared as investors look for a safe bet amid market ups and downs. Currency rate of great britain pound This explains the stock price rally for the companies involved in mining for gold and silver. Several mining companies have now indicated that they expect to see dividends resume or increase this year, which will no doubt be music to investors’ ears.

Shareholders will be hoping for big dividends from mining companies going forward The London Stock Exchange has long been the home to many of the biggest diversified mining houses, including BHP, Rio Tinto, Glencore and Anglo. That is in part down to the conditions the city offers. Britain currency rate in india Being an established financial centre which continues to attract funds, companies can generally find the liquidity they need to go about their business. Currency of great britain pound London is viewed as a secure place to invest money because of its solid regulations and strong rule of law. Great britain currency coins The country is also relatively politically stable, even post-Brexit.

“This is a product of history,” he says. Great britain pound currency “These companies have been around for a long time.

Currency of england pound In industrial revolution times, we had a lot of mines in the UK. Currency britain British mining expertise has remained here. What currency does the uk use Therefore when looking for capital for exploration work, London became the natural place to come to.” RBC’s Mr Broda agrees: “London has been the base for long term capital and as we went through the expansions in Australia, Canada and South America, you tended to see the historical relationships that Britain had with these countries come into play.

Great britain currency to usd London is open to global investing,” he says. Extremist prisoners who “seek to poison the minds of others” will be put in special units in England and Wales, Justice Secretary Liz Truss says. Copyright © 2016 BBC. The currency of britain The BBC is not responsible for the content of external sites.

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