Mining stocks are extremely volatile. However they can return handsome gains if the commodity prices rise. In recent years due to high demand from many developing countries, commodity prices like iron ore, copper, gold, etc. have soared.
Copper prices rose by almost 140% last year. The rise is attributed to “Unprecedented levels of Chinese imports, new investor cash, improving economic data and a weaker dollar.” Similarly gold gained around 25% in 2009 and closed at $1,096.20 an ounce.
The 2009 gains of other precious metals are listed below:
- Platinum = 58.7%
- Palladium = 220%
- Silver = 49.1%
Overall in 2009, commodities recorded their best year since 1973. It must be noted that while most of the mining stocks listed below had impressive gains last year, they fell hard during the global credit crisis in 2008. For example, Vale (NYSE:VALE) was down 61% in 2008.
The complete list of mining ADRs with their 2008 performance is listed below:
|1||AngloGold Ashanti||AU||South Africa||45.00%|
|3||BHP Billiton||BBL||United Kingdom||65.50%|
|4||Compania de Minas Buenaventura||BVN||Peru||68.02%|
|6||Gold Fields||GFI||South Africa||32.02%|
|7||Harmony Gold Mining||HMY||South Africa||-7.29%|
|10||Rio Tinto||RTP||United Kingdom||142.26%|
|12||Yanzhou Coal Mining||YZC||China||190.29%|
Note: Canadian stocks are not included here as they trade as inter-listed stocks in the U.S.