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HIGHLIGHTS
- In August 2021, Eurasia Mining completed additional drilling on Nyud with the funds provided by Rosgeo (its JV partner), and successfully commissioned three plants in West Kytlim.
- Antofagasta updated its full-year copper production guidance to 710,000-740,000 tonnes and net cost guidance at $1.25/lb.
The performance of the mining stocks is often known to mirror the state of the economy. The COVID-19 pandemic forced a complete or partial shutdown of mining operations not only in the country but across the globe. According to the Mining Global report, Platinum and Palladium prices declined by over 40% because of global social distancing measures.
With the recent reopening of the economy, relaxation in restrictions, and rising vaccination rates, mining companies have once again resumed operations in full swing in the country. IBISWorld estimates the size of the global mining industry to grow by over 10% in 2021, on account of fluctuating demand.
(Data source: Refinitiv)
Let us review in detail the stock performance of these 2 FTSE mining stocks -
Eurasia Mining Plc (LON: EUA)
Eurasia Mining is a global company engaged in the mining and exploration of minerals such as gold, palladium, rhodium, platinum, and iridium. The company is the operator of West Kytlim Mine, Monchetundra Project located 3km from Severonickel, and Norilsk Nickel's processing facilities located on the Kola Peninsula.
Eurasia Mining’s shares are trading at GBX 32.75, up by 0.77% at 8:06 AM BST on Wednesday 15 September 2021.
In August 2021, Eurasia Mining completed additional drilling on Nyud with the funds provided by Rosgeo (its JV partner). The company also announced the successful commissioning of three plants in West Kytlim.
Eurasia Mining recorded $23 million in cash as of 12 May 2021. Its net sales for the year ended 31 December 2020 was £937,962 compared to £1,128,970 in the previous year.
In the last one year, Eurasia Mining shares have given a return of 65.00% to shareholders. The company’s current market capitalisation stands at £913.90 million.
Antofagasta Plc (LON: ANTO)
Antofagasta is a company engaged in exploring, mining, processing, transporting, and marketing of gold and copper. Antofagasta’s shares were trading at GBX 1,431.00, up by 0.25% at 8:12 AM BST on Wednesday 15 September 2021.
Strong demand and prices of copper contributed to the group’s robust financial performance, generating revenues of $3.6 billion, up by 67.9% year-on-year, and driving up EBITDA by 133% to $2.4 billion for H1 2021. The company updated its full-year copper production guidance to 710,000-740,000 tonnes and net cost guidance to $1.25/lb.
Recently, the company’s Zaldívar and Centinela mines were awarded the international Copper Mark, in line with the UN Sustainable Development Goals.
For H1 2021, Antofagasta announced an interim dividend of US23.6 cents or 17.0446 pence per ordinary share to shareholders, payable 1 October 2021.
In the last one year, Antofagasta shares have given a return of 30.20% to shareholders. The current market capitalisation of the FTSE 100 company stands at £14,073.10 million.
CONCLUSION:
Mining stocks constitute a popular investment choice for investors. However, the performance of the metals and mining stocks is heavily dependent on economic conditions. It is thus extremely important for investors to carefully evaluate all stats prior to investing in mining stocks.
