Top mining companies by market cap
- Q3, 2017

By Khurram Ahmed Shahzad | 06 October 2017

The third quarter of 2017 epitomized the swing in fortunes for the world's leading mining companies, with 24 of the 25 largest companies posting quarter-over-quarter gains. Fresnillo Plc was the only company in this group to buck the trend, posting a 2.4% decline in market capitalization compared with the end of June.

The top 25 mining companies were worth an aggregate US$699.6 billion at the end of September, a 33% increase compared with the corresponding quarter of 2016, when the same companies had a value of US$527.1 billion. S&P Global Market Intelligence calculates the global market value of the industry's listed companies at the end of September as US$1.42 trillion.

ASX-listed BHP Billiton Group retained its top position with a market cap of US$102.2 billion. The company recently reported that it had achieved its full-year guidance production target for iron ore and had set annual production records at its Western Australia Iron Ore operations, at its Spence copper mine and at two coal mines in Queensland.

Rio Tinto, Glencore Plc and Vale SA also retained their second to fourth positions in the September quarter and improved their market caps to US$85.4 billion, US$66.0 billion and US$50.4 billion, respectively. Rio Tinto declared an interim dividend of US$1.10 per share, equivalent to US$2 billion. During the quarter, the company continued to ramp up its Silvergrass iron ore mine in Western Australia, where full commissioning is expected in the fourth quarter. Located adjacent to Rio Tinto's Nammuldi mine, Silvergrass will add 10 Mt/y to production capacity.

Gold miners Barrick Gold Corp., Newmont Mining Corp. and Newcrest Mining Ltd. all posted quarter-over-quarter gains in market cap. Newcrest reopened the Panel Cave 1 section of its Cadia East mine after completing remediation and upgrade work. The company expects Cadia East's production rate to be fully restored by the end of March 2018.

Barrick reported second-quarter net earnings of US$1.08 billion, compared with only US$138 million in the prior-year period. This significant increase in net earnings was predominantly due to U$882 million in gains related to the sale of BHP's 25% interest in the Cerro Casale project in Chile and the sale of a 50% interest in the Veladero mine in San Juan, Argentina.

TSX-listed fertilizer producers Potash Corp. of Saskatchewan Inc. and Agrium Inc. saw improvements in their market caps to US$16.1 billion and US$14.8 billion, respectively. The two companies announced on Sept. 11 that the Canadian Competition Bureau has granted unconditional regulatory approval for the proposed "merger of equals" following the issue of a "no-action letter."

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The September quarter's top 25 included three new entrants — Chile-based lithium producer Sociedad Quimica y Minera de Chile SA at No. 21, ASX-listed South32 Ltd. at No. 23 and Shanghai-listed Shaanxi Coal Industry Co. Ltd. at No. 24.

South32 said Sept. 14 that it had entered into a deal to acquire up to an additional 15 million shares in Arizona Mining Inc., equivalent to 4.9% of the latter's common shares on issue. Together with 45 million shares acquired in May, representing 15% of Arizona Mining, the transaction will increase South32's stake to 19.9%.

Canada-based Franco-Nevada Corp. which in the June quarter regained a position among the industry's top 25 companies, slipped by two places in the September quarter and is now No. 20, with a market cap of US$14.3 billion.

Hong Kong-listed molybdenum producer China Molybdenum Co. Ltd. saw its market valuation increase almost 108% to US$23.2 billion in the September quarter. As a result, the company recorded the second-largest jump among the top 25, with its ranking rising to No. 10, from No. 23 at the end of the June quarter. China Molybdenum recently completed a nonpublic share issue, which closed more than twice oversubscribed, raising 18 billion Chinese yuan.



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