Economy
Market Cap of Top 40 Miners Hit $714b—Report
By Dipo Olowookere
A new report by PwC has revealed that market capitalisation of the top 40 mining companies in the world increased by 45 percent to $714 billion, approaching the 2014 level. This was mainly due to rising commodity prices.
The report, titled PwC Mine 2017 report, noted that the world’s Top 40 miners recovered from a race to the bottom, with bolstered balance sheets and a return to profitability in 2016, giving them much-needed space to pause and draw breath.
As it looks to the future, the 14th edition of PwC’s industry series analysing financial performance and global trends, also outlines the new opportunities and hazards on the horizon – and the impact of intransigent or innovative activity.
Mine 2017 was released by PwC Africa last week at the Junior Indaba conference held in Johannesburg.
Michal Kotzé, Energy, Utilities and Mining Industry Leader for PwC Africa, commented: “The narrative of the Top 40 in 2016 tends to read like a mine site safety mantra: Stop. Think … Act. The industry has moved out of danger but 2016 was not a year of significant action, and we now wait to see who will be bold and step out beyond the fluctuating market confidence.”
The report analysed 40 of the largest listed mining companies by market capitalisation. The financial information for 2016 covers the reporting periods 1 April 2015 to 31 December 2016, with each company’s results included for the 12-month financial reporting period that falls into this time frame.
The number of emerging companies included in the Top 40 has decreased by two and now totals 17. There were seven new entrants from the previous year, five of which had made appearances on previous rankings in either 2014 or 2015. First Quantum and Teck Resources re-emerged on the 2016 list after strengthening their financial positions.
The report recognises a return to profitability in 2016, with an aggregate Top-40 net profit of $20 billion; after an aggregate loss of $28 billion in 2015. The improved fortunes of the industry were then directed to strengthening balance sheets.
Revenue from the Top 40 remained relatively flat – up just one percent from the previous year’s sum of $491 billion – despite a rebound in commodity prices, particularly coal and iron ore in the second half of the year.
Capex fell dramatically again, by a further 41 percent, to a new record low of just $50 billion, the report noted.
After hitting a near-record in 2015, impairment charges tumbled last year to a less-alarming $19 billion.
The report said debt repayments totalled $93 billion, up from $73 billion a year earlier, with most of the debt issued to refinance, rather than fund acquisitions or mine development.
Kotzé added: “We see an improved gearing ratio of 41 per cent, down from the 2015 record of 49 per cent. But this is still well above the 10 year average of 29 per cent. Interestingly, we also found that around half the capex figure was invested in sustaining activities, so the growth capital portion was strikingly small compared with previous years.”
Rapidly rising commodity prices sparked renewed market optimism and improved credit ratings across the Top 40 firms. Valuations also climbed, especially for the traditional miners, with the trend continuing through the first quarter of 2017 even as commodity prices remained flat. But, valuations aside, there is little to suggest that the group made any substantial advances throughout the year.
For the fourth consecutive year, the industry reduced spending on exploration. $7.2 billion was invested in 2016, barely one-third of the record $21.5 billion allocated in 2012, with the funds cautiously targeted at less risky, later stage assets, typically located in politically stable countries.
Limited M&A activity
One of the biggest M&A stories of 2016 concerned the assets that did not sell. Numerous large deals, expected to be completed by early 2017, were withdrawn from the market, possibly due to the rebound in commodity prices and the improving prospects of the companies that owned them. More broadly, asset sales in 2016 were largely strategic rather than fire sales. Mines, especially diversified players, sold minority stakes in non-mining businesses.
China in the driving seat
China remains the exception to the dominant investment behaviour within the Top 40. During the downturn, Chinese companies demonstrated one enormous advantage over other miners from both traditional and emerging countries: access to capital.
With deeper pockets, Chinese players were able to fund more acquisitions than their counterparts, either confidently buying assets at bullish prices or moving quickly on assets made available at the bottom of the price cycle. We also saw an increase in acquisitions by Chinese private equity firms, and we expect China to continue to be active in acquiring global mining assets as a way to reduce its longer term dependency on imports.
Moving into action
Balance sheet clean-ups require discipline, and this has resulted in a tailing-off of impairments, the avoidance of any new bankruptcies, the absence of any significant streaming transactions and a general passing of distress. The market rightly applauded this, reinstating a positive gap between market caps and net book values that was absent in 2015.
All of this provides a platform for decisive action in the future. While many will be willing to ride the waves of industry sentiment, others will see the conditions as ripe for value accretive moves, with market differentiation their immediate goal.
Action might also come in the form of commitments to greenfield projects, M&A or technology – or a combination of these – while others may realign their strategy in response to external forces such as recycling and substation, shareholder activism and government intervention.
Will the digital revolution become an enduring part of the mining psyche?
New technologies promising a boost for the sector include software to optimise asset utilisation, devices to remotely monitor and control activities, and robotics to automate repetitive task.
The benefits of asset optimisation tools are significant. According to an analysis by PwC, it is estimated that maintenance costs can be reduced by 20 to 40 percent, asset utilisation increased by up to 20 percent, capital expenses reduced by 5 to 10 percent, while also delivering improved environmental, health and safety outcomes. A number of Top 40 miners have announced or implemented digital innovations that are already enhancing performance.
Andries Rossouw, PwC Assurance Partner commented: “Mining companies need to combine engineering excellence and know-how with a new open-mindedness to learn from advanced analytics and a need to embrace robotics and platforms that fundamentally challenge decades of doing things the same way…it is as much about behaviour as technology.”
Rossouw concludes: “The key question is, who will act rather than simply react? There will be more advances this year but how impactful they will be, remains to be seen.”
By Adedapo Adesanya
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Mr Taiwo Oyedele, has linked the surge in the nation’s stock market to ongoing fiscal reforms aimed at strengthening investor confidence and stabilising the economy.
Speaking at the 3rd PUU Capital Market Colloquium on Monday in Abuja, Mr Oyedele described the ongoing reforms as one of the most consequential fiscal resets in Nigeria’s modern history, noting that they are designed to build trust in the economy, stimulate inclusive growth, and foster a more investment-friendly environment.
According to him, the impact of these reforms is already visible on the trading floor of the Nigerian Exchange (NGX) Limited. As of mid-February 2026, the All-Share Index recorded a 25.3 per cent return within the first seven weeks of the year, while market capitalisation crossed the psychological N100 trillion mark in January before reaching an all-time high of over N125 trillion by February 20.
On January 13, 2026, the index reached an all-time high of 165,837.33 points, extending a rally that had already delivered a 51.2 per cent return in 2025, the strongest performance in nearly two decades.
Mr Oyedele linked the strong performance to structural reforms that had improved transparency, enhanced foreign exchange liquidity, and provided greater predictability in tax administration.
“The results of these policies are already evident on the trading floor. As of mid-February 2026, the Nigerian Stock Exchange (NGX) showed exceptional performance with the All-Share Index (ASI) recording a robust 25.3 per cent return in just the first seven weeks of the year, with market capitalisation crossing the psychological N100 trillion mark in January, and reaching an all-time high of over N125 trillion by 20 February 2026.
“Confidence continues to grow from both foreign and domestic investors, driven by the structural reforms and strong performance in key sectors like energy, industrial and financial services,” he said.
He explained that historically, Nigeria’s tax system had been fragmented and costly to comply with, discouraging investment and limiting efficient capital allocation.
“To address this, the new tax framework provides a unified, transparent and predictable environment where businesses can plan effectively, and investors can price risk appropriately,” he said.
He outlined several provisions in the new tax laws aimed at deepening the capital market. These include a full Capital Gains Tax exemption on proceeds reinvested in Nigerian shares within the same year, higher tax-exempt thresholds for small and retail investors, and a legal framework to reduce corporate income tax from 30 per cent to 25 per cent.
Other measures include the removal and reduction of certain transaction taxes, such as stamp duties on share transfers and withholding tax on bonus shares, as well as provisions that protect foreign investors from being taxed on naira gains without accounting for foreign exchange losses.
He emphasised that the ultimate goal is not merely to celebrate rising market indices but to translate financial market growth into tangible economic development, including financing for infrastructure, factories, innovation and job creation.
By Adedapo Adesanya
It was a bad day for the NASD Over-the-Counter (OTC) Securities Exchange on Monday, February 23, after it slumped 0.21 per cent at the close of business.
This pullback was influenced by profit-taking by investors in four securities, which overpowered the gains recorded by six others.
According to data, Central Securities Clearing System (CSCS) Plc dipped N3.79 to sell at N67.21 per unit compared with the previous N71.00 per unit, UBN Property Plc lost 13 Kobo to close at N1.98 per share versus N2.11 per share, Resourcery Plc fell 3 Kobo to 36 Kobo per unit from 39 Kobo per unit, and Geo-Fluids Plc depreciated 1 Kobo to close at N3.31 per share versus N3.32 per share.
As a result, the bourse’s market capitalisation went down by N5.04 billion to N2.384 trillion from N2.389 trillion, and the NASD Unlisted Security Index (NSI) decreased by 8.42 points to 3,985.90 points from 3,994.32 points.
Business Post reports that NIPCO Plc rose N23.00 to N253.00 per unit from N230.00 per unit, MRS Oil Plc added N14.50 to close at N214.50 per share versus N200.00 per share, FrieslandCampina Wamco Nigeria Plc grew by N1.85 to N93.40 per unit from N91.55 per unit, NASD Plc soared 40 Kobo to N51.28 per share from N50.88 per share, First Trust Mortgage Bank Plc advanced by 12 Kobo to N1.32 per unit from N1.20 per unit, and Food Concepts Plc improved by 6 Kobo to N3.76 per share from N3.70 per share.
As for the trading data, the volume of securities jumped 99.7 per cent to 7.3 million units from 3.7 million units, but the value depleted by 26.8 per cent to N61.8 million from N84.5 million, and the number of deals slipped 7.1 per cent to 39 deals from 42 deals.
At the close of trades, CSCS Plc was the most active stock by value (year-to-date) with 32.9 million units sold for N1.9 billion, followed by Geo-Fluids Plc with 120.6 million units valued at N473.4 million, and Resourcery Plc with 1.05 billion units exchanged for N408.7 million.
Resourcery Plc closed the session as the most active stock by volume (year-to-date) with 1.05 billion units worth N408.7 million, followed by Geo-Fluids Plc with 120.6 million units valued at N473.4 million, and CSCS Plc with 32.9 million units traded for N1.9 billion.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited ended the first trading session of the week on a positive note after it chalked up 0.66 per cent on Monday.
The gains recorded yesterday were boosted by the 3.42 per cent rise by the insurance sector, the 1.44 per cent surge by the banking index, and the 1.30 per cent leap by the industrial goods counter. They offset the 0.20 per cent loss posted by the energy sector and a 0.11 per cent decline suffered by the consumer goods industry.
Consequently, the All-Share Index (ASI) closed higher by 1,273.78 points to 196,263.55 points from 194,989.77 points, and the market capitalisation appreciated by N805 billion to N125.969 trillion from N125.164 trillion.
Business Post observed that investor sentiment turned bearish during the session after Customs Street ended with 34 price losers and 33 price gainers, representing a negative market breadth index.
Fortis Global Insurance gained 10.00 per cent to trade at 66 Kobo, Okomu Oil expanded by 10.00 per cent to N1,605.60, Fidson rose by 9.90 per cent to N95.50, NPF Microfinance Bank rose by 9.89 per cent to N6.89, and Infinity Trust Mortgage Bank jumped 9.84 per cent to N17.30.
On the flip side, The Initiates weakened by 10.00 per cent to N17.55, Deap Capital deflated by 9.97 per cent to N6.86, LivingTrust Mortgage Bank went down by 9.92 per cent to N5.90, Multiverse lost 9.92 per cent to close at N22.70 per cent, and Ellah Lakes shrank by 9.77 per cent to N11.55.
Yesterday, market participants traded 1.3 billion shares worth N31.5 billion in 95,091 compared with the 820.5 million shares valued at N28.3 billion in 63,507 deals last Friday, indicating an increase in the trading volume, value, and number of deals by 58.44 per cent, 11.31 per cent, and 49.73 per cent apiece.
Japaul ended the session as the busiest stock after selling 474.0 million units worth N2.0 billion, Chams traded 51.5 million units for N221.3 million, Jaiz Bank exchanged 48.3 million units for N566.9 million, Secure Electronic Technology transacted 46.3 million units worth N68.8 million, and Mutual Benefits sold 42.5 million units valued at N242.5 million.
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