Metals, mining top dogs mark 80% YoY surge

By Onome Amuge

The top 25 global leaders in the mining and metals industry have exhibited resilience to weather the covid-19 pandemic, accumulating $908.36 billion as of December 2020.

According to a research data analysed and published by Comprar Acciones, a Spanish finance organisation, the 25 listed companies gained an average of 2.7 per cent in market cap month-over-month (MoM) in November 2020 and a commendable 80 per cent year-over-year (YoY) increase.

Top on the log is BHP Group, with a market cap of $130.27 billion. This figure marked an increase of 12.6 per cent MoM and a decline of 2.5 per cent YoY for the world’s largest metals and mining corporation.

Rio Tinto, came second with $108.00 billion in market cap, up by 11 per cent MoM and 13.7 per cent YoY.

However, the two leaders were the only companies with market caps surpassing $100 billion as third placed Brazilian company, Vale SA amassed $74.35 billion, up by 28.8 per cent MoM and 56.1 per cent YoY.

Glencore Plc. ranked number 9, had the highest MoM growth, gaining 35.9 per cent, pushing it to $37.36 billion. The Swiss multinational commodity and mining company however shed 13.1 per cent YoY.

On the other hand, Ganfeng Lithium Co. Ltd., recorded the highest YoY growth at 196.2 per cent to stand in the 21st position. Its market cap also stood at $15.08 billion.

Hindustan Zinc Ltd. grossed $13.12 billion, the least amount on the log. Nevertheless, the accrued figure was enough to place the Indian company in the 25th position.

Spurred by a strong Chinese demand, government stimulus to alleviate the impact of the covid-19 pandemic and a wave of speculative buying, industrial metals have rebounded in the last quarter of 2020.

Copper, aluminium, zinc, nickel and tin have all recorded multi-year highs between 12 per cent and 27 per cent, while lead trails, hovering around a 2.5 per cent price increase.

Samuel Burman, Capital Economics analyst stated that the bullish mood among investors and optimism about the outlook for demand are boosting prices.

He however warned that prices of industrial metals are likely to fall in 2021 due to expected slower demand in China and a rollout of covid-19 vaccines which would make mine supply to rebound.