Miners' market values fall 18.3% YOY in January

The median market capitalization of a basket of over 2,200 metals and mining companies sank 18.3% year over year but rose 10.0% month over month in January, according to S&P Global Market Intelligence data.

Amid the broader decline in year-over-year valuations, data for the 25 largest miners tells a different story. The cumulative market values of the top 25 miners totaled $1.21 trillion at the end of January, increasing from $1.09 trillion at the end of December 2022. The market caps for 19 of the largest miners climbed year over year, with 15 companies posting percentage gains above 10%.

Commodity markets started 2023 on a high note following the decision of China, a top metals consumer, to ease COVID-19 restrictions. Despite the reopening, demand recovery for industrial metals in China has been slow, while prices of battery raw materials are retreating amid slowing demand for electric vehicle sales, ANZ said in a Jan. 20 note. Declining property prices have weighed on bulk commodities, while poor profitability is limiting efforts to significantly increase steel production, ANZ added.

PT Bayan Resources Tbk's market cap soared 446.2% year over year in January, the largest increase among the top miners. In December 2022, the company implemented a stock split to boost its liquidity.

The valuation of Agnico Eagle Mines Ltd. surged 120.2% year over year. The miner is in the process of acquiring Yamana Gold Inc.'s Canadian assets as part of a joint bid with Pan American Silver Corp. The transaction is expected to close in the first quarter.

*View the latest consensus metal price forecasts. * Check how institutional investors increased their mining shares in 2022.

The market cap of Anglo American Platinum Ltd. and PJSC Mining and Metallurgical Co. Norilsk Nickel fell about 30% year over year while PJSC Polyus' valuation dropped about 21%. Ganfeng Lithium Group Co. Ltd. and Grupo México SAB de CV also recorded drops in market capitalization.

Newmont Corp.'s market value slid 13.3% year over year at the end of January. On Feb. 5, the gold major lodged a $17 billion offer to acquire Newcrest Mining Ltd. The outlook for gold is strong in 2023 despite recession fears, according to the World Gold Council.

BHP Group Ltd. retained its status as the largest miner by valuation, posting a 6.6% year-over-year increase in market cap to $176.29 billion.

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