A company with a history of generating mining income could be worth billions in a short space of time, according to a recent investment by an investment bank.
The B250 Mining Industry Group is the first Australian investment bank to launch a research and analysis report on mining in the country.
In a report titled ‘B250 Mining: Mining in Australia’, the bank, the investment bank GIC, and the mining company’s parent company, B250 Minerals, said the B250 industry could generate $250 million in revenues over the next four years.
“We believe mining will be one of the most significant growth industries in Australia in the next few years, with revenues of more than $50 billion,” the report said.
B250 Mineral president Tim Anderson said the company was focused on growing the business while maintaining the quality of the product.
“The industry has proven itself over the last few years to be extremely profitable and to be competitive with many other industries, so there is plenty of room for growth in the industry,” he said.
Mr Anderson said that if the B500 and B250 companies had been producing in the same manner in the past few years and had achieved similar levels of growth, the B50 and B50 Mining companies would have been profitable within the next three years.
“That’s not the case now.
The growth is inefficiencies in the production system and the costs that are going to come along with that,” he told ABC News.
The company is currently in the process of laying out a plan to expand the business into new areas.
“Our plan is to start a new business in the northern Queensland area that’s an existing business that we’ve been in since the mid-2000s,” Mr Anderson said.
“It’s an independent operation with a business plan and a business that’s actually been running for five years and we’ve got the capability to go to the next stage.”
He said it was difficult to compare the business of mining to other industries and suggested the B100 and B100 Mining companies had a “good balance”.
“The B100 has done well in the mining industry and the B200, the smaller one, has done very well.”
Both of those are doing well in terms of income and in terms, you know, revenue,” he explained.
The report says that while the B300 and B200 Mining companies are in a similar situation to the B25, the business model of the B1000 has changed over time.”
B100 and the larger B1000 have done well for us, we’ve had good growth and we’re doing well,” Mr Smith said.
He said the current boom in mining in Australia was a reflection of a shift in attitudes towards the industry.”
This is a different kind of mindset now that’s changed over the past 15 years.
It’s a new attitude towards mining.
“I think we need to change the way we look at the mining business.
We need to understand that it’s a very lucrative business and that we need all the support that we can get,” he added.
Mr Smith said it would be up to the mining companies to determine how they were going to handle the changing nature of the industry in the future.
“If we don’t take the right steps, then I think it’s going to be a tough time for the industry for years to come,” he warned.
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