Major mining companies have had trouble raising capital because of falling commodities prices and a tendency toward cost overruns, which has made it even more difficult for juniors to raise money for their projects, since chances of a buyout are remote.
So what caused the drubbing: rising commodities or falling commodities?
Chris Richardson of that consultancy says that China's slowdown, falling commodity prices and the rising costs of doing business in Australia have all made miners more cautious.
BHP, a British-Australian company, reported a 35 percent drop in second-half profit, as well as its first decrease in annual profit in three years, in the face of rising costs and falling commodity prices.
Mismanagement, falling commodity prices and high fuel costs created serious economic problems and led to a fall in an already-low living standard.
He also said the Bank of England was unlikely to rush to raise borrowing costs in the face of falling commodity prices and low wage growth.
In periods of falling commodity prices, the only way businesses could increase income was by cutting production costs, through the application of new inventions and technological innovations.
Rio Tinto rose 149.5p to £30.90 after it said it planned to cut costs by $7bn over the next two years and sell further assets to offset falling commodity prices.
Improved British Gas profits last year were the result of a slightly colder winter and lower costs, said Conn, who insisted "we passed on the impact of falling commodity prices to customers".
However, companies reported that cost pressures had eased, largely reflecting lower fuel bills and falling commodity prices.
