By Tom Manzella | 13 April 2017
The first quarter of 2017 concludes with minor shifts in market cap rankings for the metals and mining industry's largest companies. The top 25 are worth an aggregate US$632 billion as of March 31, an 8% increase over the end of the December 2016 quarter, when the same companies held a value of US$587.17 billion. At March-end 2016, these companies were worth only US$433.20 billion, although it is important to note that the composition of the top 25 differed at that time.
The top five companies remain unchanged since the end of December, with BHP Billiton, Rio Tinto, Glencore, Vale and Coal India maintaining their rankings. Only BHPB experienced a quarter-on-quarter slip in value, by an insignificant 1%. The market caps of Glencore and Vale improved by 14% and 21%, respectively, during the first quarter, while also rising 73% and 138% compared to the first quarter of 2016.
A handful of companies saw a significant quarter-on-quarter change in market value. The largest was at Bombay Stock Exchange-listed Vedanta, whose value rose 33% in three months to US$12.56 billion. The diversified natural resources company, and Indian subsidiary of London-based Vedanta Resources, improved by 11 positions to No. 22, which is the largest shift in the rankings. The company, which was well outside the top 25 a year ago, with a value of only US$4.03 billion, recently announced a US$1 billion dividend and indicated that a merger with oil and gas company Cairn India could be imminent. Meanwhile, Hindustan Zinc, 65% owned by Vedanta, sits at No. 12 and was worth US$18.82 billion at the end of March. The company may accelerate mine expansion plans, based on its anticipation of higher zinc prices to come.
The second-largest improvement in market value was at LSE-listed Fresnillo, which rose to No. 16 from No. 23 at the end of December. The world's largest primary silver producer was worth US$14.34 billion, marking a 29% quarter-on-quarter improvement. Fresnillo achieved record silver and gold output in fiscal 2016 and saw its profit surge to US$427 million during the year, compared with US$70.5 million in 2015. This was attributed to improved commodity prices and higher volumes.
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