Major mining shares fall to 41% during the year
BHP lost on average about U.S. $ 400 million a day in capitalization
The slowdown in China’s growth would be marking the end of “super cycle” in the price of copper, which recorded a fall of 14.5% in 2013. In this scenario, the shares of major global mining accumulate up to 41% so far this year.
This is the case of Antofagasta Mineral, whose titles in London lost 41.24% during the year and is by far the hardest hit copper mining in the year. Thus, the company controlled by the Luksic family lost U.S. $ 9,300 million in market valuation this year.
The fall in BHP Billiton’s Titles, one of its biggest rivals, is more limited, with a decline of 26.98% in the year, though its loss in market value is much more pronounced. In the 131 days that has traded this year, its market capitalization has fallen from U.S. $ 196,851.97 million to U.S. $ 144,083.03, yesterday. With this, the mining company has lost averaged about U.S. $ 402.8 million daily in market value.
In the case of Anglo American, their titles have retreated nearly 40% in the year, while Rio Tinto’s and Xstrata Glencore’s , lost 30% and 31% respectively.
Of course, one must remember that it is difficult to make comparisons between different mining, since each has exposure to different metals.
Markets and costs
For the director of base metals from BME Copper in Intierra-ex-Bloomsbury Minerals Economics, Paul Dewison, markets have been battered this year, “but also the mining profits have dropped dramatically and that is also related to prices metals that have fallen a lot. “
The expert explains that mining companies have been reducing “dramatically” their profits. “If you look at the 2012 annual results you may notice that some companies reported losses last quarter mainly because amortized assets. For now they are very concerned to control costs and that takes time, “he said.
However, Dewison states that as investment these firms may become more profitable to the extent that they can control their costs, but he warns that “this process will take between one and two years.”
Source: Diario Financiero
