Analyzing the impact of cost control and reduction practices on mining companies’ profitability. A case of Mimosa Mining Company

Abstract

panies’ profitability and Mimosa Mining Company was used as case study thereby generalizing the results to the mining industry. Research objectives and questions were established and these guided the researcher in coming up with relevant literature related to the study. The research employed a quantitative research methodology to enable numerical analysis of data. The research population consisted of twenty five respondents. A survey was conducted and data was collected using a questionnaire thereby answering the research questions. Data collected was presented in various ways such as contingency tables and graphs. The data was then analysed using linear regression on SPSS software so as to establish a relationship between the variables of the research. Some of the findings of this research were that there is a direct relationship between cost management and profits, there is an inverse relationship between costs and profits and there are cost management techniques which are effective and some which are not effective in the mining industry. The study recommended that cost management techniques which best suit an unstable economy should be adopted. Areas which the researcher thought needed further research were also highlighted.