Seen as a global grouping, mining stocks touched nine-month highs on 3 June, before screeching down to a trough on 23 June, and then rising sharply to make 10-month highs on Monday this week, before taking a breather that has continued across Wednesday, particularly among Chinese mining stocks. On Tuesday, Chinese stockmarkets had made yet another series of 12-month highs.
Over the past month in particular, the huge demand for Chinese stocks of all kinds, not least mining names, has created interesting patterns in global investment portfolio flows. Very strong flows into Chinese base metal stocks have to some degree been shadowed in Western markets; outside China, copper stocks have created some of the strongest interest, as seen in the cases of London-listed Antofagasta, Poland's KGHM Polska Miedź, and Canada's First Quantum.
Flows over the past month into precious metals stocks, covering gold, platinum and silver, have been lighter, but still positive; only specialist miners of diamonds, oil sands and potash have been less demanded. At the same time, there is no question that a select list of gold names remain among the world's most desired mining stocks, and indeed, stocks of any kind.
Seen over the past 12 months, listed gold stocks, as a global group, have held closer to stock price highs than most other subsectors, but have been outflanked on the bounce by the likes of specialist copper and silver miners, and even zinc diggers.
In a number of cases, however, the returns recorded are distorted by frothy price levels among any number of listed Chinese stocks. In the case of zinc, as an example, prices are currently relatively high over a 12-month period for Hunan, Huludao Zinc and Shenzhen Zhongjin, while the majority of zinc miners listed elsewhere remain relatively subdued; however, good performances are becoming more the norm, as seen in the cases of Talvivaara Mining and Volcan.
STOCK GROUPS
Value
From
From
USD bn
high*
low*
Top 100 global miners
1458.77
-35.5%
146.9%
100 hottest gold stocks
157.78
-14.2%
201.4%
Silver stocks
20.66
-35.3%
253.0%
Oil stocks
2405.18
-27.7%
55.0%
S + P 500 Energy
1054.71
-35.5%
42.1%
Zinc stocks
31.69
-23.9%
261.0%
Copper stocks
106.05
-35.8%
250.2%
Gold stocks
277.61
-25.9%
157.2%
Gold ETFs
46.19
-17.3%
28.8%
Uranium stocks
27.83
-28.9%
156.2%
Paper stocks (60)
61.91
-37.8%
118.4%
Shipping stocks (32)
36.88
-57.5%
110.0%
World banks (80)
2885.49
-37.4%
123.8%
Dow Jones Industrial
3071.18
-26.9%
48.0%
* 12-month
Source: market data; analysis by Barry Sergeant
* 12-month
At this point in time, among gold heavyweights, Kinross remains the price leader, a status held for some weeks, followed by China's Zijin, and then Goldcorp, a volatile stock, but one that tends to be a useful indicator for the overall direction of gold stocks. Measured on its NYSE price, Goldcorp has ranged between USD 13.84 a share and USD 40.90 over the past 12 months, with current trades around the USD 35.66 mark. Seen over a longer period, AngloGold Ashanti has ranked as price leader among global Tier I gold diggers; it remains among the most 60 in-demand gold stocks globally.
Gold stocks at the top of the in-demand pile include Mali-focused Glencar Mining, under firm bid from Tier I member Gold Fields; Continental Mines, which holds the Xietongmen project in China, and Evolving Gold, running high on drill results at its Rattlesnake project in Wyoming.
A strong performance from various Australian gold names features: Red 5, focused on the Siana project in the Philippines; Chalice Gold, which has a new partner at its Gnaweeda Gold Project in the northern Murchison province of Western Australia; Barra Resources, where a maiden drilling program intersected significant widths of gold mineralisation at Spargo's Reward at the new Kambalda West Gold project, alongside Barra's other interests at Burbanks, Phillips Find's, and the flagship Mt Thirsty Project; and ever-popular Kingsgate, gold miner at Chatree in Thailand, with plans to expand into southeast Asia, Australia and South America.
Further top guns from down under include Ampella Mining, which has recently started marketing a great gold story out of Burkina Faso, Catalpa Resources, Emmerson Resources, Regis Resources, and, or course, Australia's explosive star of 2009, London-listed Norseman Gold.
Among further most-demanded Canadian-listed names are found the generally firm favourites among specialist investors, in the form of San Gold, Romarco, Lake Shore Gold, Queenston Mining, and West Timmins. Moto Goldmines has also run very hard, as a now-real takeover target.
Among stocks where prices have reached into the stratosphere, Ventana Gold has seen a relatively stable price for a good month now; there has been some profit taking in Pelangio; the market value displayed by La Mancha Resources has calmed somewhat, and moderate profit taking has been seen in high fliers such as Sandfire Resources, US Gold Corp., and PC Gold.
100 SELECTED HOTTEST GOLD STOCKS
Stock
From
From
Value
price
high*
low*
USD bn
GBP 0.09
0.0%
208.3%
0.044
CAD 1.24
-3.1%
313.3%
0.147
CAD 1.54
-3.8%
1000.0%
0.119
AUD 0.09
-4.3%
270.8%
0.048
GBP 0.05
-4.5%
180.0%
0.095
AUD 0.32
-4.5%
350.0%
0.019
GBP 0.15
-4.8%
275.0%
0.146
AUD 0.16
-5.9%
290.2%
0.037
CAD 2.40
-6.3%
321.1%
0.568
CAD 0.88
-6.4%
877.8%
0.222
CAD 2.99
-6.6%
398.3%
0.586
AUD 6.65
-7.0%
202.3%
0.523
AUD 0.37
-7.6%
748.8%
0.038
CAD 4.84
-8.2%
536.8%
0.256
AUD 0.11
-8.3%
478.9%
0.105
AUD 0.16
-8.6%
290.2%
0.030
CAD 5.09
-8.8%
671.2%
0.511
CAD 1.86
-9.3%
1330.8%
0.229
AUD 0.58
-9.4%
820.6%
0.117
GBP 0.36
-9.9%
2316.7%
0.102
CAD 9.09
-10.4%
341.3%
0.479
USD 9.32
-10.6%
291.6%
3.461
CAD 1.28
-11.1%
966.7%
0.058
USD 2.80
-11.1%
636.8%
0.294
USD 18.62
-11.2%
171.8%
12.936
CAD 1.57
-11.3%
265.1%
1.433
CAD 9.28
-11.5%
165.1%
0.920
CNY 10.87
-11.6%
189.1%
16.762
CNY 59.43
-11.6%
350.2%
6.189
CAD 30.04
-11.6%
300.5%
1.034
USD 10.16
-11.7%
357.7%
3.727
CAD 0.97
-11.8%
781.8%
0.027
CNY 62.31
-12.0%
501.2%
7.210
AUD 2.54
-12.1%
519.5%
0.351
CNY 24.21
-12.2%
306.9%
1.940
AUD 2.27
-12.4%
4629.2%
0.175
CAD 2.75
-12.4%
161.9%
0.198
AUD 0.14
-12.5%
250.0%
0.075
AUD 0.70
-12.5%
407.2%
0.038
CAD 0.07
-12.5%
600.0%
0.004
AUD 1.87
-12.6%
340.0%
0.794
USD 35.66
-12.8%
157.7%
26.054
AUD 0.26
-13.3%
147.6%
0.287
CAD 0.45
-13.5%
592.3%
0.134
HKD 12.82
-13.5%
589.2%
0.723
CAD 6.52
-13.6%
365.7%
1.563
USD 0.43
-13.8%
331.1%
0.101
CAD 0.99
-13.9%
182.9%
0.015
USD 39.20
-14.8%
180.0%
7.473
AUD 0.23
-14.8%
219.4%
0.078
CAD 2.40
-14.9%
258.2%
0.565
AUD 0.31
-15.1%
425.4%
0.042
GBP 0.73
-15.1%
68.8%
0.091
CAD 2.20
-15.4%
193.3%
0.507
CAD 3.68
-15.4%
503.3%
0.221
GBP 0.51
-15.5%
392.7%
0.097
USD 36.46
-15.5%
172.7%
12.916
CAD 0.30
-15.7%
490.0%
0.063
CAD 6.54
-15.7%
626.7%
1.412
CAD 8.57
-15.7%
240.1%
0.462
CAD 3.37
-15.8%
215.0%
0.150
HKD 6.64
-15.8%
51.6%
0.565
AUD 0.21
-16.0%
133.3%
0.056
CAD 0.84
-16.0%
460.0%
0.051
CAD 1.78
-16.0%
493.3%
0.044
AUD 0.47
-16.1%
235.7%
0.105
CAD 1.71
-16.2%
388.6%
0.202
CAD 8.88
-16.2%
166.7%
0.483
AUD 0.71
-16.5%
184.0%
0.053
CAD 0.90
-16.7%
2150.0%
0.118
AUD 0.45
-16.7%
130.8%
0.048
USD 7.70
-16.8%
670.0%
2.426
USD 2.12
-16.9%
430.0%
0.461
CAD 26.17
-16.9%
125.2%
2.695
CAD 0.68
-17.1%
106.1%
0.072
AUD 5.48
-17.1%
131.2%
1.311
CAD 2.10
-17.3%
500.0%
0.049
GBP 6.12
-17.4%
558.1%
7.202
AUD 0.40
-17.7%
295.0%
0.055
CAD 9.20
-17.8%
221.7%
1.947
CAD 3.83
-17.8%
147.1%
0.418
CAD 5.17
-17.9%
12825.0%
0.382
CAD 0.30
-18.1%
637.5%
0.068
HKD 2.90
-18.3%
262.5%
0.111
CAD 2.45
-18.3%
206.3%
0.079
CAD 0.61
-18.7%
510.0%
0.048
AUD 0.34
-19.0%
325.0%
0.119
CAD 0.42
-19.2%
281.8%
0.018
AUD 30.00
-19.3%
81.3%
11.868
USD 59.56
-19.7%
167.3%
4.573
USD 24.07
-19.8%
167.4%
6.617
USD 2.63
-19.8%
275.7%
0.389
CAD 0.14
-20.0%
211.1%
0.013
CAD 0.32
-20.0%
433.3%
0.011
CAD 1.40
-20.0%
115.4%
0.042
USD 0.28
-20.0%
75.0%
0.015
CAD 0.30
-20.0%
650.0%
0.008
CAD 0.63
-20.3%
800.0%
0.027
CAD 0.35
-20.7%
1280.0%
0.027
CAD 0.19
-20.8%
850.0%
0.008
Averages/total
-13.5%
576.5%
157.778
Weighted averages
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