The markets are giving British mining companies an early Christmas present
The continuing slump in commodity prices, as well as a series of natural disasters, and a few very badly structured debt deals have led to plummeting share prices, slashed dividends and a raft of profit warnings.
On Monday however the mining industry got a bit of a late year boost, as metal prices nudge upwards, thanks to speculation in the markets that Chinese producers will cut production to help prop up prices.
Nearly all major metal prices are in the green so far on Monday, and that in turn has boosted FTSE 100 listed mining companies.
As of 11:00 a.m. GMT (6:00 a.m. ET), all major mining companies listed in the UK have seen substantial gains.
Glencore, the Swiss based miner and trader is enjoying the best day so far, up by more than 8%, nudging above 0.87p per share. The firm has been given a welcome boost by a price upgrade on from Citibank on Monday morning. Citi has increased their target price for Glencore to £1.60 per share, up from £1.30, thanks largely to the company committing to a reduce its debts quicker than expected.
Glencore is leading the pack today, but both Anglo American, and Lonmin, are also up by more than 6% at the time of writing, while BHP Billiton, Antofagasta, and Rio Tinto are all seeing gains in excess of 3%.
Here's Anglo American, which has had a good few days, following a crushing couple of weeks after it announced a massive restructuring:
BHP Billiton has been getting slammed after the collapse of a dam at a BHP owned mine in Brazil, but investors are getting a bit of respite on Monday:
If this Santa Rally continues, then Christmas at the tables of British miners might be a bit happier than expected!
- Royal Bengal Tiger spotted in Sikkim at an altitude of above 3,500 metre
- FPIs invest Rs 26,505-crore in Indian equities in December
- Quantum Computing Explained
- 10 Foods you should avoid eating in breakfast
- 8 Irresistible seasonal snacks to warm your winter days