Wide variations in current the two largest producers of coal, which are based in China, exhibit a C2C of as little as 2 days, owing to the combination of a negative working capital performance 22 days receivables and payables differential (meaning that they are able to collect from customers 22 days faster than they among commodity groups pay their suppliers) and a very low DIO. In a time of razor-thin Current performance in WC among the commodity groups varies margins, this lower draw on working capital can be the competitive considerably. These variations are driven by a combination difference between success and failure. For aluminium and g^^Y[lgjkkh][aÕ[lg]Y[`[geeg\alqYf\Zqkljm[lmjYdYf\ gold, the largest producers (two and three in number) display gh]jYlagfYd^Y[lgjkkh][aÕ[lg]Y[`[gehYfqoal`af]Y[`_jgmh& a C2C of 23 days and 36 days, respectively, which is 60% and 40%, respectively, below that of their smaller peers. For both In 2013, the average C2C for the mining sector was 39 days (on a commodity groups, this was due to lower DSO and DIO, and for sales-weighted basis), with iron ore and coal displaying the lowest gold, due to a much higher DPO. levels (25 days each) and platinum and nickel the highest (with In today’s environment, scale has become essential to optimize l`]aj;*;]p[]]\af_1-\Yqk!&9dmeafameYdkgÕ_mj]kYegf_l`] gh]jYlaf_Yf\ÕfYf[aYdh]j^gjeYf[]Yf\eala_Yl]l`]jakck best performers (with C2C of 37 days), while gold and copper associated with major projects. It provides companies with greater stand in the middle (C2C of 48 days and 51 days, respectively). ghhgjlmfala]klg\jan]^mjl`]j]^Õ[a]f[a]kafl`]ajhjg[]kkaf_Yf\ Interestingly, larger producers (using sales as the indicator of size) supply chains operations and negotiate favorable payment terms tend to exhibit a lower C2C than their smaller peers. For example, with their customers and suppliers. WC metrics by commodity group, 2013 Days Overall Alu Coal Copper Gold Iron ore Nickel Platin Potash Silver Zinc DSO2823392812282110412622 DIO49573355733799120486040 DPO 38 43 46 32 37 39 21 36 26 26 29 C2C3937255148259995636033 Kgmj[]2=QYfYdqkak$ZYk]\gfhmZda[dqYnYadYZd]ÕfYf[aYdklYl]e]flk& Cash in the ground: working capital management in the mining sector 8