World’s top miners hit record combined valuation amid booming price environment

A broad-based, demand driven boom in commodities prices has increased the combined valuations of the world’s 50 biggest miners by US$335 billion in the first quarter of the year, according to MINING.COM’s latest compilation.

The combined market capitalisation of the top 50 mining companies is now at a record $1.75 trillion – a 150% rise on the $700 billion low stooped to at the beginning of the COVID-19 pandemic in March and April 2020.

The index received a boost from the recently completed merger of gold players Agnico Eagle Mines and Kirkland Lake Gold that created a $30+ billion company, although valuations moved sharply higher across the board.

This is demonstrated by the fact that just over $3 billion secured a company a spot in the top 50 at the end of Q1 2020, but today number 50 on the list is the $8.5 billion valued lithium and iron ore newcomer Mineral Resources.

Furthermore, new investment has pushed 30 miners above the $20 billion valuation mark – a year ago, only 17 companies were at that level.

The big three in the sector – BHP, Rio Tinto and Vale – contributed combined gains just shy of $100 billion in the last quarter. Meanwhile, other big hitters like Glencore, Anglo American and Newmont Goldcorp are currently trading close to 52-week highs.

Rapidly increasing demand for mined materials and Russia’s invasion of Ukraine has pushed the Bloomberg Commodity Spot Index, which tracks 23 energy, metals and crop futures, up by 32% this year. The price environment has led to fresh predictions of an imminent ‘commodities supercycle’ predicated by the global clean energy transition.

@RGNonline