The market value of mining companies grew by a median of 22.3% month over month in July, extending gains for the fourth month in a row. The industry's 25 largest players — consisting of 13 precious metals-focused companies, six base metals companies, five diversified commodities companies and a single bulk commodities company — all had higher market cap than in the previous month.
Industry indexes similarly remained on the uptick month over month. The SNL Metals & Mining Index climbed 12.1% between June 30 and July 31, while the SNL Precious Metals Index rose 17.9% over the same period. The SNL Base Metals Index grew 14.0% and the SNL Diversified Mining Index gained 9.3% month over month.
Market cap percentage changes were calculated based on reported currencies, while the company ranking was based on market values converted into U.S. dollars.
London-listed Fresnillo PLC led percentage gains as its market cap reported in British pounds soared 46.5% month over month to the equivalent of US$11.93 billion in July. The company reentered the top 25 list in last place from the 34th spot in June.
In its half-year results released July 28, Fresnillo reported a 52.6% year-over-year jump in January-through-June EBITDA on the back of increased gross profit and reduced expenses. However, its attributable profit for the period was down 8.0% at US$64.5 million, primarily reflecting foreign exchange losses.
Gold producer PJSC Polyus had the next-largest percentage increase as its market value in its reported currency climbed 41.5% to the equivalent of US$30.59 billion in July. The Russia-headquartered miner said July 16 that its second-quarter gold sales slid 2% to 672,000 ounces year over year while sales revenue rose 30% to US$1.15 billion helped by elevated gold prices. Polyus ranked ninth in terms of market cap in July, up from 12th place in the previous month.
Zijin Mining Group Co. Ltd.'s market cap in its reported currency grew 34.4% to the equivalent of US$20.03 billion, lifting the company's ranking by four spots to 16th place in July. S&P Global Ratings and Fitch Ratings recently lowered Zijin Mining's long-term credit ratings, citing diminished cash position and rising leverage on the heels of its acquisition of a 50.1% stake in Tibet Julong Copper Industry Co. Ltd. However, both ratings agencies had stable outlooks for the Chinese miner, partly due to expectations of increased gold and copper production.
China Molybdenum Co. Ltd. was another reentry on the list, edging up to 24th, from 26th in June, as its market cap increased 21.7% over the period to US$12.74 billion. The company's subsidiaries reached a streaming financing deal in mid-July with Canada-headquartered Triple Flag Precious Metals Corp., which granted the latter rights to future gold and silver production from China Molybdenum's majority-owned Northparkes mine in Australia. The deal, which has been described as among the largest in the history of streaming, is worth US$550 million in up-front cash plus other payments.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.