Top 50 mining stocks lose $1.2 trillion in market value from peak

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After a brutal second quarter, investors in the world’s 50 biggest mining companies are in full retreat as metal prices slump and uncertainty grips the sector. miningnews

As fear overtook greed in Q2, MINING.COM’s TOP 50* ranking of the world’s most valuable miners fell by $383 billion – based on primary exchange share price movements converted into US dollars – over the course of the second quarter and are now worth $1.37 trillion, down from a peak of $1.75 trillion at the end of March this year.

Among the heavyweights, pureplay copper producers were hardest hit and most of those losses came in the past couple of weeks. While coal producers did well across the board, the top performer year to date and Chile’s sole entry into the ranking is lithium extractor SQM.While trading on Western markets in Russian stocks have been halted, the country’s miners, much like the rouble and the Moscow Stock Exchange, have proved resilient.

In terms of numbers, China now also has the most firms represented at ten, followed by Canada, the US and South Africa. Australia is down to 5 representatives after lithium company Mineral Resources had to make way for uranium giant Kazatomprom, which returns to the ranking based on units in the company trading in London. Source: MINING.COM, Miningintelligence, Morningstar, GoogleFinance, company reports.

For instance, should smelter companies or commodity traders that own minority stakes in mining assets be included, especially if these investments have no operational component or warrant a seat on the board? Lithium and battery metals also pose a problem due to the booming market for electric vehicles and a trend towards vertical integration by battery manufacturers and mid-stream chemical companies. Battery producer and refiner Ganfeng Lithium, for example, is included because it has moved aggressively downstream through acquisitions and joint ventures.

 

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