26 October 2012: Australia's top 25 ASX-listed mining
companies experienced an increase in their collective value
of $4.4 billion in the September quarter, increasing to
approximately $367 billion up from $362 billion at the end
of June. However, the increase was dampened by the sharp
decline in iron ore prices during that period.
Deloitte's National Mining Leader, Stephen Reid, said that
iron ore accounted for approximately 65% of the combined
reported earnings of the top 25 miners last year, followed
by copper and gold (20%) and coal (10%).
"Given how heavily weighted the industry is towards iron
ore production, it's not surprising that the recent impact
of uncertainty surrounding China's future demand on the
value of Australia's iron ore producers has had such a
significant impact on the overall value of top 25," Mr Reid
said. "If pure iron ore producers were removed from the top
25, the collective value of the remaining companies
increased by around $9 billion."
However, Mr Reid said that there were other commodities
that had fared well during the period.
"Benchmark hard coking coal prices improved during the
quarter, but gold was the standout commodity, with gold
miners adding over $8 billion to the top 25 during the
quarter.
"Gold producer St Barbara was the best performer during
this period, moving up 15 places to join the top 25 by the
end of September, while Newcrest's market capitalisation
grew by as much as Fortescue's fell during the quarter.
Investors' appetite for gold was seen in the other new
entrants to the top 25, West and East African-based
Resolute Mining and the Philippines-based Medusa Mining."
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