In 2015 investors were quick off the mark to short the Top 40 and growing liquidity concerns piled on the pressure for some. With fresh exposure of poor capital discipline and rock bottom returns on equity, the Top 40 beat commodities prices to the bottom.
The start of 2016 brought some welcome relief. Commodity prices were generally up and the HSBC Global Mining Index rebounded 13% to the end of March 2016. Over the same period, the Top 40 fared even better, experiencing a climb of 29% in their market value. These numbers were especially positive, given that the FTSE 100 and Dow Jones contracted 4% and 1%, respectively, over the same period. The widening gap between miners and the broader market indices that we have reported since 2014 started to reverse, albeit with much volatility. Continue reading to find out more the Global trends in the mining industry.