ASX-listed mining giants in focus today

Highlights: 

• The benchmark S&P/ASX 200 index (INDEXASX:XJO) closed 1.77% strong at 6,848.70 on Thursday, 8 September 2022.
• Of all the 11 prominent sectors under the S&P/ASX 200 index, 10 closed in the green zone today, including the ASX 200 Materials sector. 
• The S&P/ASX 200 Materials sector (INDEXASX:XMJ) closed 2.66% higher on ASX today. 

The benchmark S&P/ASX 200 index (INDEXASX:XJO) painted the ASX green on 8 September 2022, as the majority of the sectors ended strong. The ASX 200 Materials sector was also one of such well-performing sectors on ASX today (8 September 2022).

The S&P/ASX 200 Materials sector (INDEXASX:XMJ) closed 2.66% stronger at 15,381.1 points after gaining 398.9 points on ASX today. 

What is going on in the Australian mining industry? 

Most of the mining bigwigs stepped into their respective new financial years, leaving behind an eventful financial year - FY22. More or less, every Australian mining giant has reported solid financials in their FY22 results, driven by the high prices of commodities primarily due to the Russia-Ukraine war.

A few days back, some media houses reported that Europe is currently experiencing an energy crisis as Germany decided to control its gas supplies, followed by Russia’s halted gas supply to Europe through the major Nord Stream pipeline.  

Although the European countries are in search of an alternative source of energy at this moment, the crisis has resulted in the surge in Australian coal prices. As a result, many energy companies have begun to enjoy the perks of the European energy crisis, followed by a surge in coal prices. 

As per the data released by the Australian Bureau of Statistics (ABS), the profit earned by the Australian mining giants has taken a leap by AU$10.2 billion to AU$81 billion in the June 2022 quarter. This accounts for a gain of 14% in operating profit in just three months (June 2022 quarter). 

Update on greenhouse gas emission reduction by Australian miners: 

Image source: © Nicoelnino | Megapixl.com

As per media reports, the MCA Climate Action Plan Progress Report 2022 has proven that the Australian mining companies are putting continuous efforts towards the reduction of greenhouse gas, and it is progressing towards achieving the target of zero greenhouse gas emission by 2050.  

The first Climate Action Plan released in the year 2020 reflected 30 actions to be taken in order to reduce greenhouse gas emissions. Therefore, the 2022 report gives an overall picture of how these actions are being taken by the Australian miners to bring down greenhouse gas emissions.  

As a result, the Climate Action Plan report 2022 confirmed that 93% of measures contained within the plan have already been initiated, and 80% are on track in year two amidst the unprecedented growth in demand and value for Australian commodities across the world. 

Furthermore, various other climate initiatives were proposed during 2021-22, which will play a significant role in technology development and will help in the reduction of greenhouse gas emissions. 

These measures include- hydrogen-fuelled freight, usage of electric vehicles, using solar panels for generating energy, methane capture and conversion, installing Carbon dioxide emission tracking systems, renewable energy agreements, battery minerals contracts, and using LNG-powered bulk carriers. 

Here in this article, we will primarily discuss about the performance of some leading ASX-listed mining giants such as BHP Group Limited (ASX:BHP), Rio Tinto Limited (ASX:RIO), Fortescue Metals Group Ltd (ASX:FMG), Newcrest Mining Limited (ASX:NCM) and South32 Limited (ASX:S32). 

BHP Group Limited (ASX:BHP) 

Australian mining giant BHP Group Limited (ASX:BHP) shares ended Thursday’s trading session on a positive note on ASX. The stock closed at AU$36.920 per share, up 1.792% on ASX.

BHP’s share price has declined almost by 10% on ASX in last one year. Furthermore, the iron ore producer’s YTD-based share price declined by around 13% (as of 4:10 PM AEST on ASX today).

Rio Tinto Limited (ASX:RIO) 

Industry-leading iron ore miner Rio Tinto Limited (ASX:RIO) shares closed 2.74% higher at AU$91.860 per share on ASX.

The share price of Rio Tinto has marked a loss of around 13% on ASX over the last one year. Furthermore, the Australian miner’s YTD-based share price fell by almost 8% (as of 4:10 PM AEST on ASX today).

Fortescue Metals Group Ltd (ASX:FMG)  

Vertically integrated green energy and resource company Fortescue Metals Group Ltd (ASX:FMG) shares marked significant gains on ASX by the end of today’s trading session. Fortescue’s share price stood at AU$16.78 per share after gaining significantly by 4.875% on ASX by the end of Thursday’s trading session.

Over the last 12 months, Fortescue’s share price has registered a loss of around 6% on ASX. On the other hand, the green energy and resource company’s YTD-based share price fell over 15% (as of 4:10 PM AEST on ASX today).

Newcrest Mining Limited (ASX:NCM)

Image source: © Awcnz62 | Megapixl.com 

Leading Australian gold miner Newcrest Mining Limited (ASX:NCM) shares closed marginally higher on ASX on Thursday. By the end of today’s trading session, Newcrest’s share price had gained 1.371% to AU$17.000 per share.

During last one year, Newcrest’s share price has fallen significantly by almost 29% on ASX. Furthermore, the gold miner’s YTD-based share price fell approximately by 31% (as of 4:10 PM AEST on ASX today).

South32 Limited (ASX:S32) 

Diversified metals and mining firm South32 Limited (ASX:S32) shares ended today’s trading session on a positive note on ASX. South32’s share price closed trading 1.481% stronger to AU$4.110 per share on Thursday evening.

In the period of the last 12 months, South32’s share price went up significantly over 27% on ASX. Furthermore, the mining company’s YTD-based share price gained around 1% (as of 4:10 PM AEST today).