VINACHEM

Volatility on metal and mining markets continued in the third quarter with copper losing sight of record prices hit in March, gold’s bounce back sputtering, lithium doubling in price year to date, coal surging to unprecedented levels, potash advancing to a 14-year peak and uranium experiencing the best market since Fukushima.  

The MINING.COM TOP 50* ranking of the world’s most valuable miners lost $134 billion – based on primary exchange share price movements converted into US dollar – over the course of the third quarter and are now worth $1.22 trillion.
From its peak at the end of March the combined value of the top 50 has now shrunk by more than $500 billion, with fertilizer, lithium and coal companies the only stocks showing gains in 2022.

Losses on the LSE, ASX and TSX were compounded by a soaring dollar against all major currencies with BHP, which flirted with a $200 billion in April to briefly become the most valuable stock on the FTSE, now worth $75 billion less.

Coal on fire

After spending time outside the top 10 last year, Glencore’s position at no. 3 at a valuation of $70 billion end-Q3 now seems secure. The Swiss giant is benefitting from a strategy not to ditch coal like its peers and a trading arm making the most of sky high prices for energy.  

Among the heavyweights, pure play copper companies were hardest hit with average losses in market capitalization since the start of the year at 31%. Vancouver’s Teck Resources, thanks to its exposure to Canadian oil sands and coal is the lone base metal producer to show gains this year.

Coal companies are the best performers on the index with Shaanxi Coal up 67% and Yanzhou Coal nearly doubling in value this year in dollar terms despite a declining renminbi. Coal India, the world’s number one producer of steam coal, is also enjoying a bull market, up over 32% in 2022.

Nirvana lithium  

A doubling of lithium prices so far this year in China and record prices for spodumene saw two new entrants in the top 50 from the sector, bringing the number of lithium companies in the top 60 to six.

While Chinese stocks suffered a terrible quarter, into the teeth of a falling Aussie dollar, Mineral Resources jumped 10 places to no. 43 during Q3 while Pilbara Minerals rocketed to no. 40 after rising 45% on the ASX.  

Fellow Australian lithium players on their current trajectory could soon join the ranking – Allkem sits at no. 58 while IGO is bubbling under at no. 52, just below Kumba iron ore. 
Chile’s only representative in the top 50 – SQM – is up more than 80% so far this year as the Santiago company reports an astonishing 10-fold jump in profits while top producer Albemarle has become a fixture in the top 20 at no. 15.  

Russian retreat  

While trading on Western markets in Russian stocks has been halted, the country’s miners, much like the rouble and the Moscow Stock Exchange, until recently defied gravity.  

Norilsk Nickel, thanks to captive investors on the MCX, is still worth north of $30 billion but that is down $16 billion during Q3. The PGM, nickel and copper producer had nominally been the fifth most valuable company at end-June, but now appears locked out of the top 10.

Diamond giant Alrosa has managed to stay in the ranking at no. 46 while a $10 billion decline in value sees Polyus drop 13 places at a valuation of $11.7 billion.