- Write by:
-
Wednesday, January 27, 2021 - 12:43:00 PM
-
485 Visit
-
Print
Mining News Pro - BHP and Rio Tinto have managed the impact of the COVID-19 pandemic to remain two of Australia’s most valuable brands in Brand Finance’s Australia’s 100 report.
BHP has dropped from fourth to fifth position on the top 10 most valuable brands list in 2021.
The company’s position suffered a a 17 per cent decrease in brand value to $7 billion.
“This is due to a greater economic risk across the market, which has impacted the discount rate applied to the valuation. Although revenue forecasts remained stable overall, a movement of revenues into less highly branded segments has reduced the royalty rate applied to the model, further reducing brand value,” Brand Finance stated.
Last year, Brand Finance found that BHP’s brand strength index (BSI) declined due to weakened social responsibility scores.
“BHP’s brand value has relied solely on its strong revenue in the face of a brand strength decline (down 1.8 to BSI 71.0) caused by weakening corporate social responsibility scores,” Brand Finance stated.
Rio Tinto dropped out of the top 10 most valuable brands in Australia, moving from the ninth to 11th position in 2021.
In last year’s report, Brand Finance was anticipating both companies to experience softening demand in China.
“Both brands are negotiating the increasing intolerance of new mining projects, among the Australian public and internationally; a strong brand becomes increasingly important in keeping other influential stakeholders, such as regulators, on a side to maintain growth and profitability,” Brand Finance stated.
“As BHP and Rio Tinto operate across borders, they are exposed to fluctuating global trade and have suffered as a result of softening demand in China, a key market.”
Short Link:
https://www.miningnews.ir/En/News/610224
A prefeasibility study for Predictive Discovery’s (ASX: PDI) Bankan gold project in Guinea gives it a net present value ...
Iron ore futures prices drifted higher on Thursday as the latest soft data from top consumer China triggered renewed ...
Rio Tinto said on Wednesday it is teaming up with a global venture studio and start-up investor to back the development ...
Outflows from global physically backed gold exchange traded funds (ETFs) continued for a 10th month in March, but at a ...
Australia’s Fortescue said on Monday it would form a joint venture with OCP Group to supply green hydrogen, ammonia and ...
BMO Bank quietly dropped its policy restricting lending to the coal industry in late 2023, helping it avoid being ...
Mining News Pro - The ceremony of commemorating the tree planting day and the beginning of the afforestation project and ...
Mining News Pro - The DRI manager of Hormozgan Steel Company's said: According to the plans made in line with the ...
Private credit managers are doing significantly more fossil-fuel deals now than just a few years ago, as they step into ...
No comments have been posted yet ...