B.C.’s biggest mines suffer three-year revenue erosion

Average revenue for top producing mines has fallen 26.2% since 2018 peak

British Columbia’s largest producing mines have had a rough few years with revenue dropping precipitously after peaking in 2018, according to data collected on Business in Vancouver’s Biggest Mines in B.C. list.

Average revenue for the largest mines hit a high point in 2018 at $704.1 million. The average subsequently fell 26.2% to $519.5 million in 2020, wiping out at least three years of growth preceding 2018.

No. 3 Teck Resources Ltd.’s (TSX:TECK.B) Fording River mine, near Elkford, is perhaps the most emblematic of the decline. In 2018, Fording River was No. 1 on the list with $2.22 billion in revenue, 34.6% higher than the second-largest mine. However, the mine’s revenue fell 55.4% to $991.6 million in 2020.

Mining Chart 2021 2

 

Meanwhile, the median revenue for B.C.’s top mines has remained relatively constant over the past four years, suggesting that smaller mines on the list did not have the same wild revenue swings as their larger counterparts did.

No. 8 Red Chris mine near Dease Lake boasted the largest one-year revenue growth: $400 million in 2020, up from $200.9 million in 2019. No. 15 Coeur Mining Inc.’s (NYSE:CDE) Silvertip mine had the steepest revenue decline: a 95.3% drop to $2.6 million in 2020 from $56.6 million in 2019. •