OREANDA-NEWS. Mixed Moves of Mining Plays in 2016-to-date.

  • The 18 SGX-listed mining plays have a combined market capitalisation of S$1.3 billion and averaged a 1.9% gain in the year-to-date with swings ranging from a 47.3% decline to a 256.3% gain.
  • Of the 18 mining plays, the five largest capitalized stocks are Falcon Energy Group, GCCP Resources, Geo Energy Resources, Wilton Resources Corporation and CNMC Goldmine Holdings. Together these five stocks have averaged a 1.8% gain in the year-to-date.
  • Over 70% of top metals & mining companies have a presence in Singapore, which has also become a clearing centre for over 90% of globally-traded iron ore swaps.

The stocks that make up Singapore’s Materials Sector are relatively diverse. This means the stocks have a history of reacting differently to industry trends and events. One key segment of the Materials Sector is the Metals & Mining Industry, however this sub-industry only includes half of the 18 Singapore listed stocks that are involved in the exploration of minerals. The other nine stocks are categorised to other sectors, such as the Energy Sector with coal miners categorised to the Coal & Consumable Fuels sub-industry.

This group of 18 stocks that are specifically involved in coal mining, precious metals, industrial minerals or operate associated diversified businesses has grown from three stocks in 2011. Expansion of the sector has corresponded with global economic interest and over 70% of the world’s top metals and mining companies now have a presence in Singapore, which has also become a clearing centre for over 90% of globally-traded iron ore swaps. 

Mining Businesses

The aim of minerals exploration is to discover a new mineral deposit and quantify the amount and quality of the mineral in order to assess if it can be profitably extracted. As noted in the Investor’s Guide to the Minerals Industry, the key sources of risk and reward are exploration, technical, financial, environmental, social, political, and sovereign issues. The profitability of the mining industry is a function of the difference between revenue and costs. The price of many mineral commodities is volatile and can be subject to large variations. If revenue is tied to short-term market pricing, there is a risk associated with falling commodity prices and a reward associated with rising prices.

The 18 SGX-listed mining plays have a combined market capitalisation of S$1.3 billion and averaged a 1.9% gain in the year-to-date. Of the 18 mining plays, the five largest capitalized stocks are Falcon Energy Group, GCCP Resources, Geo Energy Resources, Wilton Resources Corporation and CNMC Goldmine Holdings. Together these five stocks have averaged a 1.8% gain in the year-to-date. Seven of these 18 stocks also represent 40% of the SGX Mineral, Oil & Gas Index - Falcon Energy Group, Geo Energy Resources, GCCP Resources, Resources Prima Group, Alliance Mineral Assets, Sincap Group and Magnus Energy Group.

Most Recently Active by Value & Volume

Among the different search criteria used in SGX StockFacts, investors can view the most recently active stocks by turnover and volume. The platform details the average daily turnover and volume for each stock over the past three months through the “Average 3 Month Traded Value” and “Average 3 Month Traded Volume” criteria respectively. A simple click on the column header will sort the stocks according to highest average daily turnover or volume for the period. Among the 18 mining stocks, the five stocks with the highest three month average daily turnover have been Anchor Resources, Alliance Mineral Assets, Geo Energy Resources, GCCP Resources and Resources Prima Group. Meanwhile the five stocks among the 18 mining plays with the highest three month average daily volume have been Magnus Energy Group, Anchor Resources, Alliance Mineral Assets, Terratech Group and Sincap Group.

The table below details the 18 mining plays, and is sorted according to market capitalisation. Click on each stock to visit its profile page on SGX StockFacts.

Name SGX Code Market Cap in S$M Total Return MTD % Total Return YTD % Total Return 1 Yr % Relevant Minerals
Falcon Energy Group*** 5FL 141 -1.1 -17.1 -37.0 Coal
GCCP Resources 41T 139 -15.6 2.6 21.2* Limestone
Geo Energy Resources RE4 138 -1.7 -18.6 -42.7 Coal
Wilton Resources Corporation 5F7 129 -13.2 1.7 -39.8 Gold
CNMC Goldmine Holdings 5TP 108 23.3 40.2 5.4 Gold
Resources Prima Group 5MM 92 -5.7 -28.6 -62.7 Coal
Abterra*** L5I 89 -1.4 -14.3 -30.8 Coal, Iron Ore
China Mining International*** BHD 84 -10.9 256.3 -15.2 Iron Ore
Malaysia Smelting Corporation Berhad*** NC9 82 -1.8 16.4 -14.2 Tin
AsiaPhos 5WV 80 -8.2 -12.7 -27.6 Phosphate
Manhattan Resources*** L02 70 -3.9 -12.8 -54.4 Serpentine
BlackGold Natural Resources 41H 32 -18.0 -16.3 -87.9 Coal
Terratech Group 40I 28 -16.3 -31.7 -49.4 Marble
Alliance Mineral Assets 40F 26 -7.0 -44.1 -59.8 Tantalite
Sincap Group*** 5UN 14 -14.7 -47.3 -57.4 Gypsum
Magnus Energy Group *** 41S 6 0.0 -25.0 -97.1 Coal
Golden Energy & Resources** AUE N/A N/A N/A N/A Coal
Average     -5.8 1.9 -40.6  

Source: SGX, Bloomberg & SGX StockFacts (data as of 22 April 2016)

*Note total returns of the stocks are based on returns since their respective IPO date

**Golden Energy & Resources is currently suspended from trading.

***Companies with diversified businesses

Name SGX Code P/E P/B Last Price in $ 12M High in $ 12M High Date 12M Low in $ 12M Low Date
Falcon Energy Group*** 5FL 2.6 0.4 0.174 0.290 04/27/2015 0.167 02/26/2016
GCCP Resources 41T N/A 4.7 0.119 0.194 04/30/2015 0.090 01/15/2016
Geo Energy Resources RE4 N/A 1.1 0.114 0.210 05/19/2015 0.102 10/02/2015
Wilton Resources Corporation 5F7 N/A 4.2 0.059 0.100 05/11/2015 0.040 11/27/2015
CNMC Goldmine Holdings 5TP 7.7 2.4 0.270 0.295 04/27/2015 0.167 01/20/2016
Resources Prima Group 5MM N/A 1.4 0.049 0.151 05/25/2015 0.035 02/17/2016
Abterra*** L5I N/A 0.7 0.360 0.680 05/18/2015 0.260 12/07/2015
China Mining International*** BHD N/A 2.5 0.570 0.768 06/08/2015 0.160 09/17/2015
Malaysia Smelting Corporation Berhad*** NC9 N/A 1.1 0.815 1.000 04/29/2015 0.530 09/29/2015
AsiaPhos 5WV 38.7 1.0 0.089 0.138 07/06/2015 0.077 02/24/2016
Manhattan Resources*** L02 N/A 0.5 0.123 0.280 05/19/2015 0.093 02/18/2016
BlackGold Natural Resources 41H N/A 0.2 0.041 0.375 05/18/2015 0.040 01/13/2016
Terratech Group 40I N/A 2.4 0.042 0.081 05/04/2015 0.025 12/03/2015
Alliance Mineral Assets 40F N/A 1.6 0.066 0.163 12/03/2015 0.045 09/22/2015
Sincap Group*** 5UN N/A 0.5 0.029 0.081 11/23/2015 0.029 02/12/2016
Magnus Energy Group 41S N/A 0.1 0.003 0.098 04/27/2015 0.002 02/12/2016
Golden Energy & Resources** AUE N/A N/A N/A 0.900 04/07/2015 0.250 12/08/2014
Average   16.3 1.5          

Source: SGX, Bloomberg & SGX StockFacts (data as of 22 April 2016)

**Golden Energy & Resources is currently suspended from trading.

***Companies with diversified businesses