Mining Industry Market Value Falls Below $1 Trillion

Mining and Exploration
29/10/2015 22:46

The market value of the mining industry's listed companies has fallen below $1 trillion for the first time since April 2009. Only four years ago, during the peak of the so-called “mining boom”, the sector was worth nearly US$2.5 trillion. In its recently published Industry Monitor, SNL Metals & Mining notes that the aggregate market capitalization of 2,684 listed companies tracked in the SNL database at the end of September was only $934 billion, compared with $1,030 billion at the end of August. This represents a 9.3% month-on-month decline. The industry's valuation on the world's stock exchanges has fallen over 43% since the middle of last year.

For comparison, the entire global mining industry is now worth considerably less than Apple ($650 billion) and Google ($440 billion) combined. The low point remains November 2008, when the market capitalization of the then 2,390 listed companies was $656 billion. Notwithstanding the continued decline in the value of the industry's listed companies, SNL's Pipeline Activity Index, which measures exploration and development activity, increased in September after a healthy increase in drilling activity and a slight uptick in announcements of initial resources.