Mining companies around the world are scrambling to secure the lucrative deposits in an increasingly hostile environment as global investors scramble to tap the burgeoning cryptocurrency market.
Polymet Mining, the mining arm of mining giant Polymet Resources, has released its first mining profitability report, detailing the mining profitability of the first nine months of the year.
The report reveals a record high of almost $1.3 billion for the first quarter of 2016, up more than 40% year-on-year, with mining costs rising significantly to an average of $14.30 per gigahash per minute (GH/s).
The firm’s CEO and founder, John O’Brien, told Forbes that the growth in mining profitability is due to the increased availability of ASICs, more efficient mining equipment, and the development of more efficient ASIC-based mining solutions.
However, the company noted that there was also an increase in demand for mining equipment as a result of increased mining equipment orders, and there was a slight drop in prices for equipment such as mining rigs and mining rigs, which are becoming more valuable as demand grows.
The firm also noted that the average price per GH/s is still lower than other mining equipment prices due to increased capital expenditure.
Polymptures report also highlights that mining profitability increased by 15% year on year to $14 per GH, and that the price of the most profitable equipment, the 1GH/hr and 2GH/h rigs, increased by more than 25% to $2.99 per GH and $4.50 per GH respectively.
The average price for the 1 GH/hr rig increased by over 20% to about $1,500 per GH.
The company also noted the recent increase in mining costs due to a shift from using more expensive equipment such a mining rig to using cheaper mining equipment such an ASIC.
However it noted that a large portion of the increase in costs is due, in part, to the introduction of new equipment, as well as the increased demand for equipment.
In the second quarter of the fiscal year, Polymet Mining expects to increase revenue to $1 billion and the operating profit to $8 million.
The company expects that this year the company will have a revenue growth rate of 25%.
The company has been steadily expanding its mining operation since it launched in 2015.
Its mining operations include operations in North America, Australia, the Middle East, Asia Pacific and Africa.
In March 2016, the firm announced plans to expand its mining operations to the United Kingdom and South Africa, as part of its plans to build a new research facility in Germany.
PolyMet Mining is also building an additional research and development facility in North Carolina.
The facility is expected to produce high-quality lithium batteries, with the company also aiming to create a battery storage network to serve large and small businesses in the United States and Europe.
Poly Met is also developing a mining operation in Russia, and in April 2018 it announced that it would invest $300 million in an advanced manufacturing facility in India, the United Arab Emirates, and Oman.