By Carolina Curiel (ScrapMonster Author)
October 30, 2015 10:23:17 AM
TORONTO (Scrap Monster): The total market value of top listed global mining companies has fallen to record lows during the month of September this year. The valuations dropped almost 10% month-on-month to $934 billion during the month from $1.03 trillion in August this year. The valuations have dropped below $ 1 trillion for the first time since April 2009, said SNL Metals & Mining data. The database tracks nearly 2,700 companies around the globe.
The market capitalization of mining industry firms on the world’s stock markets has declined over 43% during the past fifteen months. The industry’s valuation had hit a bottom of $656 billion in November 2008. The value of the 100 largest listed mining companies has fallen continuously during the past several months. The value of these companies is now under $800 billion, SNL data says.
According to SNL, the largest 100 mining companies has survived better than the remaining companies. These 100 companies have managed to hold the market capitalization at around 86% to 87% during the past three years. The aggregate valuation of the 100 companies stood at 85.6% in September this year, significantly lower when compared with the peak of 93.8% touched in November 2008.
Meantime, the mining and exploration activities picked up druid September this year. The month witnessed increased drilling activity. Also, companies have announced increased initial resources during the month. On the other hand, number of financing by companies with annual revenues less than $500 million halved to 12 in September when compared with 24 in August. The number of financing by exploration companies hit the lowest level since January 2012, the company noted. Also, these companies managed to raise approximately $171 million in September, 15% higher when matched with the previous month.
SNL Metals & Mining, a unit of McGraw Hill Financial, provides standardized and accurate mine metrics.