Median market value of metals, mining companies steady through December 2021

The median market capitalization of metals and mining companies around the world declined slightly, by 0.4%, through the last month of 2021 while rising 9.3% from the end of December 2020.

As the world continued to grapple with the COVID-19 pandemic, mining companies struggled with supply chain issues, inflation and a tight labor market. Still, several of the largest mining companies in the sector recorded an increase in market value, with many posting double-digit gains month over month in December 2021.

The cumulative market capitalization of the 25 largest miners analyzed by S&P Global Market Intelligence totaled $1.07 trillion as of the end of December 2021. The 10 largest companies, accounting for about 64.8% of the value of the top 25 miners, all booked market capitalization increases for the month.

The Market Intelligence analysis calculates percentage changes in market capitalization based on reported currencies, while the company rankings are sorted by values converted into U.S. dollars.

With the broader economy facing higher growth and inflation volatility, commodities could be viewed by some investors as a means to diversify their portfolios, analysts at TD Securities wrote in a Jan. 8 note. The note also warned that the further spread of COVID-19 could create further delays in shipping for the metals and mining sector heading into the new year.

"Commodities are shrugging off the rates and equity market volatility sparked by an aggressive rise in rates, the potential for an early balance sheet runoff and a dramatic increase in global infections," the note stated. "While global demand is proving resilient, the strength in prices is being driven by supply risk."

The largest company analyzed, BHP Group, grew in market capitalization by 5.7% to $151.94 billion through December 2021. The mining giant recently received approval from its board to begin unifying its corporate structure under its Australian parent, shifting from a dual listing in Australia and the U.K.

During a December 2021 call with investors, BHP Group CEO Mike Henry said the move aligns with the company's focus on generating long-term value as the company pivots to a focus on energy transition materials. "We'll do so through sustainably producing commodities that are needed for continued global growth and for decarbonization of the global economy," Henry said.

Newmont Corp. and Fortescue Metals Group Ltd. recorded the largest market capitalization gains in the sector on a percentage basis during the month of December 2021. Each recorded a market value boost of 12.9% during the month.

Newmont President and CEO Thomas Palmer said in a Dec. 2 update that the company was entering a period of significant investment that will grow production and improve margins. Similarly, Fortescue rolled out expansion news during the month, with an update stating the company would proceed with plans to study the development of the Belinga iron ore project in Gabon.

In addition to Newmont and Fortescue, Vale SA and Freeport-McMoRan Inc. also reported double-digit gains in market value.

Nine of the top 25 largest mining companies recorded a decline in market share. The steepest decline was booked by Ganfeng Lithium Co. Ltd., which dropped 15.5% to $30.38 billion in December 2021. The company's market value remained 48.4% higher year on year.

Ganfeng Lithium signed a contract with Tesla Inc. in November 2021 to supply battery-grade lithium hydroxide products for three years starting in January 2022.

China Northern Rare Earth (Group) High-Tech Co.Ltd. also experienced a double-digit decline in market value through December 2021.