Bloomberg Línea — Latin American listed mining companies have had a mixed 2023, in a context in which the main concern of the sector is a slowdown in the world economy, mainly in the United States and China, which would affect demand.
Both Mexican-Peruvian company Southern Copper and its main shareholder, Grupo Mexico, have had a very positive year, while other giants in the sector, such as Brazil’s Vale or Chile’s Sociedad Quimica y Minera, have seen their shares fall.
Bloomberg Línea looks at the performance in 2023 of the mining companies in the region that have had the sharpest movements, either upward or downward.
The downward movers
- Brazilian giant Vale operates in the mining, logistics, steel energy and oil sectors. To understand the dimension of its importance, it is the second company with the highest weight in the ETF of Latin American companies, behind Petrobras. So far in 2023, Vale shares have fallen 19.9%. In the post-pandemic period, its shares hit $22.94 (at the end of July 2021) and today are at $13.60.
- Mexican mining company Fresnillo is the world’s largest producer of silver ore (primary silver) and Mexico’s largest gold producer. So far in 2023, its shares have plummeted 39% on the London Metal Exchange. In October 2020, this company’s shares traded at 1,357.50 GBP and currently trade at 549.40 GBP.
- Sociedad Química y Minera de Chile (a private mining company engaged in the exploitation, processing and commercialization of potassium nitrate and specialty fertilizers, iodine, potassium and lithium in Chile) had been one of the big stock market stars for much of 2022. However, between December 31 of last year and August 9 of this year, SQM shares fell 12.7%. Meanwhile, the shares are 38.6% below their all-time high of September 14, 2022.
The highest climbers in 2023
- Grupo Mexico is the mining division of this company is the largest mining company in Mexico and the third largest copper producer in the world. Its share price has risen 25% on the Mexican stock exchange compared to December 31, 2022. However, its price is 28% below the historical maximum, reached on March 24, 2022.Southern Copper: with operations in Peru and Mexico, Southern Copper is one of the world’s largest producers of copper and related products. Its main shareholder is the aforementioned Grupo Mexico. This firm’s share price on Wall Street rose 38.1% between the last day of 2022 and August 9, 2023. On July 31 of this year the share hit an all-time high ($87.44) and from there fell to the current $84.06 per share.
- Southern Copper: with operations in Peru and Mexico, Southern Copper is one of the world’s largest producers of copper and related products. Its main shareholder is the aforementioned Grupo Mexico. This firm’s share price on Wall Street rose 38.1% between the last day of 2022 and August 9, 2023. On July 31 of this year the company reached its historical maximum ($87.44) and from there it fell back a little to the current $84.06 per share.