Australian mining companies hit hard in first six months of 2013

July 1, 2013

A study from BusinessDaily found that nearly $80 billion has been wiped away from the value of largest mining companies listed in Australia as the decade-long boom in mining seems to be coming to an end The market capitalization of the 33 mining companies in the ASX 200 index has plunged from $361.9 billion at the end of last year to $282.5 billion at the close of trade last week - a $79.5 billion disappearing act.

The study found that the largest companies lost a combined 22 percent of their market capitalization in the first six months of 2013 and that there are now half as many listed miners with a market value of at least $1 billion.

Gas and oil producers and mining service providers - which have also been buffeted in the resources rout - are not included in the analysis.
BHP Billiton and Rio Tinto have shed a combined $49.9 billion over the period.

BHP’s global market cap has declined by about 16 percent, or $29.8 billion.

Rio Tinto’s market cap is down 19 percent - $20 billion. The BHP and Rio Tinto figures include the value of the companies' listings in the UK.
Andrew Forrest's Fortescue Metals now stands as the nation's third largest miner — despite losing $5 billion in value.

Newcrest has shed $9.4 billion amid a plunge in the gold price and concerns over its corporate governance.

Only one company in the group, Iluka Resources, has managed to increase its share price over the past six months.

The company is the world’s largest mineral sands miner, producing metals used in paints, ceramics, plastics and ink.
Its share price has jumped 11 percent on sustained demand for its key product, zircon.

 

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