8415.0 - Mining Operations, Australia, 2005-06  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 18/10/2007   
   Page tools: Print Print Page Print all pages in this productPrint All  
Contents >> Financial operations >> Industry performance measures


A range of performance measures, mainly expressed as ratios, can be produced from the data available from businesses' financial statements. A selection of these are presented in this Chapter for the various mining industries. Information about the uses and limitations of these measures can be found in Explanatory Notes paragraphs 27-32.

Performance ratios

The following summarises the mining industry's performance ratios for 2005-06, which appear in detail in table 2.2:

  • The highest profit margins were recorded by Iron ore mining (57%) and Oil and gas extraction (52%). Gold ore mining improved slightly on 2004-05, but remained the industry with the lowest profit margin in 2005-06 (-15%).
  • The interest coverage ratios of most of the industries presented improved between 2004-05 and 2005-06, the exceptions being Oil and gas extraction, Mineral sand mining, Other metal ore mining and Services to mining.
  • The highest value of IVA to selected labour costs occurred in the Oil and gas extraction industry, where IVA exceeded selected labour costs by 16.9 times. The next highest value (11.8 times) occurred in Iron ore mining. The Services to mining industry shows the lowest value (1.3 times) for this ratio.
  • Of all mining industries shown, Oil and gas extraction (at $119,100) recorded the highest selected labour costs per person employed, despite having declined by 4% from 2004-05. This was followed by Coal mining ($118,800, an increase of 10%). For total mining, the estimate was stable.
  • Mineral sand mining was the only mining industry in which acquisition of assets exceeded IVA, resulting in an investment rate (value added) of 101.0% in 2005-06, with Gold ore mining recording the next highest value (63.3%).

Previous PageNext Page